How are new property taxes calculated?

In Virginia, property taxes are calculated by assessing the fair market value of a property and multiplying it by a tax rate that is determined by the local government. The fair market value is the price that a property would sell for at a given time and is determined by a licensed appraiser. Once the appraised fair market value is found, it is multiplied by the local tax rate. This tax rate is set each year by the local government and is based on the amount of money the government needs to pay for public services in the local area. Property taxes are also often computed differently for owner-occupied residential properties due to additional exemptions or deductions that are available. For example, the Virginia Tax Reassessment Exclusion allows certain owner-occupied residential properties to receive an exemption on up to $20,000 of the assessed value for the first 5 years of ownership. In addition to exemptions, owners may also be eligible for deductions such as homestead deductions, disabled veteran deductions, or charitable deductions. The specific amounts of these deductions vary depending on the local government, so it is important for owners to check with their local assessor’s office to learn more about these deductions and how they may affect their property taxes.

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