Property Taxes Explained

If you own a home, you are required by law to pay property taxes. Property taxes are used by the government to maintain municipal services such as: garbage removal, snow plowing, sidewalks, paving and repairing streets, lights, ditches, etc. Property taxes are due in April for that calendar year. You can also choose to pay property taxes with every mortgage payment. The financial institution will then pay the property taxes on your behalf. Many homeowners choose this option because it is easier to pay a little every week/2 weeks/monthly (however your mortage payments are set up) instead of saving for a big lump sum payment every year.

How is the amount of property tax determined?

Property taxes are higher in the city (more sidewalks, paved road repairs, lights, etc..). Every municipality has a tax rate. It is determined by a dollar amount per $1000 in value. For example: if the tax rate is $1.25 per $1000 for a $100,000 home, the annual tax bill would be $1250 ($100,000/$1000 = 1000 X $1.25 = $1250). Water and septic services are not included in property taxes. They are charged separately every 3 or 6 months and average around $1/day for both water and septic.