Accrued taxes represent the amount of taxes owed, based on income earned or property value assessment, but not yet paid. This concept plays a crucial role in accounting, taxation, and financial reporting.
A public record of the assessed value of property within a taxing jurisdiction, known as an assessment roll, lists individual tracts of land and their assessed values.
An escrow account is a financial arrangement where a third party holds and regulates payment of funds required for two parties involved in a transaction. In real estate, it typically manages property tax, homeowner's insurance, and mortgage insurance payments.
An impound account is a fund set aside by a lender for the future payment of various required expenses like property taxes and insurance premiums. These accounts are typically used in mortgage agreements.
The millage rate is the tax rate applied to property, where each mill represents $1 of tax assessment per $1,000 of assessed property value.
Operating expenses refer to the amount paid to maintain a property or run a business, including costs such as property taxes, utilities, and hazard insurance. It excludes financing expenses, depreciation, and income taxes.
An irrevocable election made by a landlord to charge value added tax on exempt supplies of buildings (rents). This enables the otherwise irrecoverable input VAT on costs relating to the property to be reclaimed by the landlord against the output tax charged on the rents.
A periodic, typically monthly, payment required by an amortizing loan that includes escrow deposits. Each periodic payment includes a principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgaged property.
A tax assessor is an official who determines the value of properties within a specific jurisdiction for the purpose of calculating property taxes.
A tax map is a document that details the location, dimensions, and pertinent information about a parcel of land subject to property taxes. These maps are typically bound into books and maintained as public records at local tax offices.
A tax sale is the sale of a property after the owner has failed to pay property taxes for an extended period. The grantee of such a sale receives a tax deed.
A clause in a lease agreement that limits the lessor's obligation to pay property taxes above a certain specified amount, ensuring that any tax increases above this threshold are the responsibility of the lessee.
Tax-Exempt Property refers to real property that is not subject to ad valorem property taxes. This commonly includes properties such as churches, homesteads, and government-owned land and buildings in many local communities.
Uniform Business Rate (UBR) is a standardized rate set by the government used to calculate non-domestic property taxes in the United Kingdom.
