Property Tax Law
Property tax law provides the government the power to levy taxes on the ownership of real estate. Since the place where a real estate property is permanent, the government can impose property taxes (also known as real estate taxes) with near-absolute certainty that it will be able to collect those taxes. To shield against the possibility of abusing the power to tax, several states have either incorporated provisions in their respective constitutions or enacted statutes that limit the tax burden that any property tax may impose on the owners of property.
The basis for property taxes is the value of the property, hence the term ad valorem tax (ad valorem means according to value). Ad valorem property tax is usually levied by states, counties, cities, towns and villages, among others to fund their respective functions and operations.
A county or township assessor or appraiser conducts a valuation of the property, called an assessment. The assessed value of a property is usually based comparative selling prices of similar and comparable real estate properties, although this practice may vary among taxing authority. The value of the land is generally assessed independently from buildings or other improvements, which are assessed under different parameters. Different types of real estate property will have varying valuation methods. It is common for state laws to contain provisions for a periodic reassessment of property, because property values change over time.
In some instances, you may not agree with the assessed value of your property, like when you think that the assessment is too high when you compare it with those of your neighboring properties. You have the right to present your objections with a local board of appeal (or board of review). It would be wise to have the assistance of a legal counsel when you appeal your assessment, because if the board will not rule in your favor, you can now ask your lawyer to take your protest or appeal to a judicial court.