One of the obligations of a property owner is the payment of state and county real property ad valorem taxes. The county tax assessor is responsible for determining the value of the property. The taxes are levied or assessed on 40% of the appraised value of the property. Properties are appraised periodically by the tax assessor. The tax value is based upon the value of the property as of January 1 of the year in which it is valued. Therefore, if you are purchasing a new home, but you close late in the year, the taxes for that year will likely be based on acreage, a vacant subdivided lot or a partially complete home. The taxes will not reflect the full value of a complete home until the following year.

The county tax commissioner is responsible for billing and collecting the taxes. The tax bills are calculated by taking the 40% of the assessed value, minus any applicable exemptions, and multiplying it by the millage rate for the county. There are various exemptions for which the property owner can apply which reduce the tax bill. The most common exemption is the “homestead” exemption. The amount of the homestead exemption varies from county to county, but ranges from $2,000 to $15,000. This can translate into a savings of several hundreds of dollars on a residential property tax bill. In order to file for the homestead exemption, the property owner must own and occupy the property as of January 1 of the following calendar year. The deadline and required documents for filing a homestead exemption also vary from county to county, but the deadline is usually May 1 or June 1. You should check with the tax commissioner in your county for the exact deadline and required documents.