What are real estate taxes?

Real estate taxes, also known as property taxes, are taxes based on the assessed value of a piece of property. In Alaska, real estate taxes are managed by local governments and are used to fund public services such as police, fire protection, and public schools. Real estate taxes are typically calculated as a percentage of the property’s assessed value, which is the estimated market value of the property minus any exemptions. The assessed value is determined by an appraiser, who visits the property and assesses it based on its condition, size, and features. The appraiser will then use a property tax formula to determine the assessed value of the property. Real estate taxes are paid annually. Generally, the owner of the property will be responsible for paying the taxes, however, in some cases, such as when a tenant is renting a property, the tenant may be liable for the taxes. Real estate taxes can vary by area and are typically subject to change each year. The amount of tax owed can also be affected by any exemptions the property may be eligible for. Additionally, some real estate transactions may involve the payment of transfer taxes, which are additional taxes due when the ownership of a property is transferred.

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