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Property Tax Information
The tax assessor's office will base
the tax bill for the current year on how the property existed as of
January 1st of the current year . It is very important that
you understand the following:
The tax bill for the current year will be billed to the Seller
although the property has been transferred or conveyed to you as the
Purchaser.
If the property was taxed as the Seller's primary residence as of
January 1st of the current year , the tax bill for the
current year will be based on the primary residence rate; however,
if you are purchasing the property as investment property, the tax
amount due will increase for the following year.
If you are purchasing new construction or recently completed
construction of your home and if the construction was not complete as
of
January 1st of the current year , the tax amount for the
current year may be based on a vacant lot. This amount is
substantially less than the tax amount will be on the complete
construction. Your taxes will increase the year following complete
construction of your home. Your amount of your property tax escrow
has been based on the complete construction estimate. Your lender
should reanalyze your escrow account after receiving the first tax
bill based on complete construction. You should be refunded any overage paid and
billed for any shortage. Your payment may change at this
time in order that the lender collect the correct amount to pay your
property taxes. Construction
Example:
As of
January 1st , 2007, property is classified by the tax
assessor's office as a vacant lot or incomplete construction.
Regardless if the home was complete or partially compete, the
determination is the classification given by the assessor's office.
The assessed value for the taxes for 2007 will also be based on a
vacant lot. The assessed value for 2008 will be based on the
complete construction and therefore, substantially higher than the
proceeding year.
If you will occupy this property as your primary residence you will
be taxed at 4% of the assessed value as determined by the assessor's
office in contrast to the 6% of the assessed value for investment
property. You will also receive any residential exemption that may
apply for the tax year. You are responsible for making sure you are
taxed at the correct rate and receive any applicable exemptions. You
must file the application for special assessment for legal residence
and verify at the time the bills are released that you received the
proper exemptions and rate. You may contact the tax assessor's
office for the county in which the property is located. The bills
are released in October of each year. Your lender is not scheduled
to pay your tax bill until December giving you time to apply for any
applicable exemptions.
Residential Exemption Form For York County
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