Owning a property to call one’s own is definitely a dream for most of the individuals. However, due to skyrocketing property prices, people often have to resort to a plethora of loans ranging from plot loans to bridge loans in order to buy land or the property of our dreams. However, buying the property of your choice is definitely not the end of your expenditure. A key expense to keep in mind at the time of property purchase is the property tax.
What is Property Tax?
A tax is a financial charge imposed upon an individual or an entity by the state to fund various public expenditures. Property Tax, also known as Mileage Tax, is a financial charge on a property which the owner of that property is required to pay. The tax is charged by the governing authority of the jurisdiction in which the property is located. It is not always necessary that the property tax has to be paid to the governing authority of the jurisdiction rather it can also be paid to the national government or to the Municipality.
In this context, property is defined as all the fixed tangible estates under ownership of the person concerned. The estate refers to houses, buildings and land. The core concept of property tax has not changed much in recent times and the concept of property tax is remarkably same throughout the world.