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Subject: TAXES
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Author Messages
DanielL3
(Louisiana)

Posts:62


12/16/2008 10:23 AM  
Can anyone inform me of the difference between real estate taxes and property taxes?


Thanks,
DonaldM3
(South Carolina)

Posts:132


12/16/2008 1:19 PM  
Daniel, I’m sure no expert on taxes but I do see (and feel) a difference: Real estate taxes are on the home we own including (except in a condominium) the land that the home is located on. Property taxes on the other hand can, depending on the locality, mean my boat, my car and other property that a locality wants to tax. In South Carolina we are taxed each year on the boat and car that we own and that is referred to as a personal property tax. We are also taxed on the real estate we own and that is referred as a real estate tax. Hope that helps you some.
BruceF1
(Connecticut)

Posts:2535


12/16/2008 1:51 PM  
Posted By DanielL3 on 12/16/2008 10:23 AM
Can anyone inform me of the difference between real estate taxes and property taxes?


Thanks,


Daniel,

I'm not an expert, either, but having been in business and from having lived in a few states, this is how I have come to view it:

Depending on the laws and how taxes are defined in your state, they could be different things, or they could be, for all practical purposes, the same thing.

We tend to think of real estate taxes as taxes on real property, such as a home that we live in or rent to others, land we own, etc. But, it can also be reffered to as a property tax in that it is a tax on real property.

We tend to think of "property tax," on the other hand as a tax on "personal" property such as an automobile, a boat, a trailer, a tradesman's tools, a retailer's inventory, a store's fixtures, a manufacturer's machinery, and so on.

They may be taxed at the same, or at different rates. Both are often used as a source of revenue for municipalities.

By way of example, here in Connecticut, there really is no difference. All property is taxed at the same rate whether it is real property or personal property (which is the "other" property tax), and combined that provides the revenue for the cities and towns.

Often, most citizens are exempt from personal property tax except for specific items such as automobiles, boats, trailers, RVs, etc. Otherwise, you would be required to inventory and pay personal property tax on the furniture in your home, the tools you own, jewelry, etc. etc. Some states only exempt personal property tax on individuals that is below a certain value, and personalproperty tax must be paid on property over a certain value. Thus, if you owned a large valuable art collection, for example, you might have to pay personal property tax on it. Businesses and self-employed people, however, usually are not exempt from personal property tax. Self-employed people, though, are generally required to pay personal property tax only on the property they use in their trade or business.
SusanW1
(Michigan)

Posts:5202


12/16/2008 3:11 PM  
Dan - are you talking about a building that the HOA owns? There may be property taxes on it AND personal property taxes assessed on it, depending on its use.
DanielL3
(Louisiana)

Posts:62


12/17/2008 5:13 AM  
In a prior post I mentioned that in our 55+ community the HOA entereed into a lease agreement (in principle at this point) with the developer. There are two liens on the community center building. PROPERTY TAX was a major issue. The HOA
board was not going to sign the lease and pay the property taxes. In Louisiana the terms property tax, personal property tax and real estate tax are used.
The Assessor of the Parish stated that since we were a non-profit association
leasing a facility, that the property will not be assessed any property tax.
The developer owns the property and should be liable for the tax. How can the
Assessor legally decide to exempt the tax on the property? I have contacted the
Louisiana Tax Commission on the subject and their legal department is researching
the legality of the decision of the Assessor.
The lease is defined as a Triple Net Lease, which requires the Tenant to pay real
estate taxes. Thus, my question as to the difference between real estate tax and property tax.
SusanW1
(Michigan)

Posts:5202


12/17/2008 5:23 AM  
Dan - double check to see if the assessor said that your exemption would be for PERSONAL property taxes. These may be waived for NFP, although I thought that was for charities only.

The real estate taxes must still be paid. But that should be included in your lease.


TonyC5
(California)

Posts:3


03/23/2020 9:31 PM  
Does anyone know what Form 3586 is? Is this charged to the HOA or the management company? I'm in California, thank you in advance!
MarkW18
(Florida)

Posts:748


03/23/2020 11:46 PM  
https://www.ftb.ca.gov/forms/2018/18_3586.pdf
TonyC5
(California)

Posts:3


03/24/2020 12:06 AM  
Is this charged to the HOA or the management company?
DouglasK1
(Florida)

Posts:1489


03/24/2020 8:20 PM  
The association would be responsible for any taxes due on its property. The MC might pay the bill, but it would be doing so out of association funds, just like they do for all other association vendors and creditors.

Escaped former treasurer and director of a self managed association.
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