If you are new in the world of real estate, you might be a bit confusing by all the taxes that are evaluated. For many people, the words "land taxes" and "real estate taxes" seem identical, but there are significant differences. Let's take a look at them.
Real estate taxes are taxes based on the property's assessed value. They are assessed on privately owned properties and funds are collected by local governments. Real estate taxes are the ones we often hear about that fund schools and pay for road repairs.
Property taxes have two subcategories. There are certainly real property taxes that are real estate taxes, but there are also personal property taxes. Think of the real property as something that can not be moved. These are things like the house, an external garage, a storage building or a barn.
Personal property is defined as things that can be moved, such as furniture. These taxes are sometimes called excise taxes. Your car is also personal property. Believe it or not, but the license fees you pay for your car is a type of personal property tax.
If you have a company that repairs objects or sells goods, this inventory is a personal property. In many cases, you are tax-free on the first $ 50,000 or $ 100,000 inventory, depending on your condition.