Every municipality levies an annual tax on most privately owned parcels of real estate located within their borders.
These property taxes are based on two factors: the value of the land and the value of the structures on the land. The total of the two becomes the “assessed value” of the property – and this value is usually re-evaluated every few years.
Property taxes are used to pay for public services like: schools, fire & police departments, streets, lighting, public transportation, and parks.
By law, a portion of the taxes are distributed to county and state governments.
Real estate taxes are paid in arrears… meaning the taxes that are paid are for the previous year.
If a property is sold, the seller is responsible for the current year’s taxes up to and including the day of closing. The buyer is then responsible for the remaining portion of the year.
