Every homeowner is required to pay property taxes. How much do we know about property taxes? Why is it so important to understand property taxes? This tax is dependent on the property's value and the applicable tax rate.
What is a property?
Before we understand the taxing of properties, it important that we understand what it is. There are two main types of property. These are the personal and real. There are many ways to define the personal and real property. They can be easily distinguished. Real properties are land and any immovable items that are installed on it. These include houses, apartments, and shopping centers.
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Personal properties are items that don't fall within the real category. These items are not attached to the land. These items are usually mobile. These include livestock, cars, and computers.
This can also be classified into tangible or intangible. The tangible category includes those that can be physically obtained, just as the examples above. On the other hand, those that fall under the intangible category are those that do not have physical attributes just like copyright and patents.
These categories should be understood as the rates for taxing them vary. These categories are also included in the types of taxes. There are many types. These include the taxes on land, properties, improvements, and personal property.