What Do Your Property Taxes Pay For?
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Published: Thursday, July 30, 2009
New homeowners often have questions about their property tax bills. Buyers of Murrieta foreclosures and Temecula bank homes even more so with such obscure line items as MFD Unit of Benefit or L & L 21. What does property tax pay for anyway? Here are the most common items found on a property tax bill and what they cover:
General Tax Levy
This is your basic property tax. It represents 1% of the assessed value of your home. Assessed value is calculated when you buy your home and will not increase unless you add improvements such as a room addition, swimming pool, or patio covers, or in some cases if you refinance. Assessed valuation can go down, however, if your home or neighborhood is deemed to have lost significant value in recent years.
The general tax levy is divided up between State, County and local agencies. It pays for local police services, your city government, and county-wide expenses such as public health, social services and the Department of Education. Local schools receive a portion of the 1% levy as well, and the bulk of their funding comes from local property tax. The quality schools serving Murrieta and Temecula foreclosures rely heavily on local property tax to deliver top-rated educational programs and to compete at the top of the national level in academic performance.
Local Assessments
Local assessments are special taxes enacted by voters in a particular jurisdiction, and funds stay local within that jurisdiction. The County Tax Assessor collects all the property tax in the County, and then distributes the money to the appropriate agencies depending on the nature of the tax. Examples of local assessments include Landscaping and Lighting Districts, often called L & L's or a special tax to fund public safety.
Several communities in Southwest Riverside County have adopted local assessments to pay for special services that make living here enjoyable. Construction booms in the 80s and 90s created beautiful neighborhoods with thousands of new residents. Many of the quality Riverside County bank homes are found in these newer neighborhoods and residents can find items for sewer installation, fire protection, library services and park services listed on their tax bills.
Special Assessments
Certain communities have adopted special assessments that only benefit particular neighborhoods. Commonly called Mello-Roos, after the state legislators that drafted the bills making these tax districts legal, these special assessments cover things like road improvements and infrastructure improvements in specific developments. Listed on your tax bill as Community Facilities Districts, these assessments are in addition to the 1% rule and are the second largest portion of your tax bill.
Not all homes have CFD's however so checking the tax records before you buy Murrieta bank homes or Lake Elsinore foreclosures can help you make informed decisions about which neighborhoods to shop in. The good thing about special assessments is that they are levied to pay for specific infrastructure and once that payment is complete, the tax goes away. The sunset date of the tax is generally listed on the tax bill as well.
Property tax bills are easy to understand once you know the basics. Esocalhomesearch.com is the valley's expert in Riverside County bank owned homes and can help you understand the potential tax payments on your foreclosures dream home. Use our convenient search tool to view the many Southern California bank homes available and start living the good life today! Contact our foreclosure specialists at 1-951-415-3607.
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