WorldWay's immigration experts introduce that in the United States, anyone who owns a house is obligated to pay property tax. Unless living in a "low tax state" such as Louisiana or Hawaii, property tax is a significant expense for every homeowner.
How much property tax does a property actually need to pay? By providing the property address, one can easily find the property tax amount on real estate websites or government tax agencies. But how is this tax amount calculated? Why do properties in the same neighborhood with similar conditions have property tax differences of thousands of dollars? All of this starts with a few key numbers used to calculate property tax.
The growth of property tax theoretically depends on the increase in property value and the rise in public spending. Assuming that government public management and education spending remain unchanged, the main factors affecting property tax include: market price, assessment ratio, and tax rate.
Market Price
The pricing of houses in the United States by local administrative agencies is based on the "fair market value" of the property. Fair market value means that both parties in a transaction, without any vested interest, are aware of the asset's assessed value in the current economy and market, and voluntarily exchange the asset. This price is the most widely accepted standard for property valuation in the United States. Therefore, the best way to determine fair market value is by looking at the actual transaction prices of similar properties in the most recent period. However, the same property in the United States may not be traded every year; some homeowners may live in their homes for 5 to 10 years before selling again, during which time assessors cannot obtain an accurate fair market value. In such cases, assessors may use other pricing methods, such as estimating based on the transaction prices of similar homes in the vicinity.
Assessment Ratio
In some areas of the United States, the assessed value of a property is equivalent to its market value. However, in many areas, the market value of a property is multiplied by a coefficient known as the assessment ratio to arrive at the actual assessed value used. This assessment ratio is determined by local legislative bodies and may change annually. Even within the same area, different standards may apply based on the type and function of the property. For example, if a property is assessed by the local assessment department at a market price of $1 million, and the assessment ratio published for that year is 5%, multiplying the two numbers gives an assessed value of $50,000 for that property.
Tax Rate
Multiplying the assessed value of the property by the tax rate effective in that area for the year will yield the specific property tax amount for that property. Since property tax rates are set by local governments, the tax rate varies from village to town across the United States. Even two neighboring villages or two houses facing each other across the street may have significantly different property taxes due to differences in school system expenditures. Generally speaking, areas with high property taxes find it difficult to attract investors, resulting in less property price inflation. Conversely, areas with low property taxes, due to relatively high investment value, are more likely to experience property price inflation and greater price fluctuations.
WorldWay's immigration experts remind investors that obtaining U.S. residency and a green card makes investing in real estate much more convenient. The key to successful U.S. investment immigration lies in choosing the right project. The Pennsylvania Highway Project, exclusively represented by WorldWay and pre-approved by the U.S. Citizenship and Immigration Services, is a 100% U.S. government EB-5 project funded by state government loans with a repayment guarantee. The first phase was sold out in just two months. Currently, the second phase of the Pennsylvania Highway Project is experiencing even more enthusiastic demand than the first phase. On March 21 and 22, WorldWay will hold official briefings for the Pennsylvania Highway Project in Beijing, Shenzhen, and Qingdao, with executives from the DVRC Regional Center and the Pennsylvania Highway Administration attending. Registration is currently hot, and the hotline for securing a spot is 400-138-2929.
Shenzhen
Date: March 22, 2015, Sunday, 14:30-17:00
Location: 29th Floor, Lianhua Lotus Hall, Four Seasons Hotel Shenzhen (138 Fuhua 3rd Road, Futian District, Shenzhen)
Special Guests: Mr. Richard C. Dreher, Deputy Chief Financial Officer of the Pennsylvania Highway Administration, and Mr. Young Min Ban, Director of the DVRC Regional Center.
Beijing
Date: March 21, 2015, Saturday, 14:30
Location: 3rd Floor, Beijing Hall, Four Seasons Hotel Beijing (Liangmaqiao Road, Chaoyang District, Beijing)
Qingdao
Date: March 22, 2015, Sunday, 14:00
Location: Conference Room 2#, 5th Floor, Westin Hotel Qingdao (8 Hong Kong Middle Road, Shinan District, Qingdao)
Special Guests: Mr. Timothy J. Carson, former Vice Chairman of the Pennsylvania Highway Administration, and Mr. Joseph P. Manheim, President of the DVRC Regional Center.
