Property taxes have been conceptualized as a low-cost collection tax, but are poorly managed by the difficulty of properly valuing property and by the traditional populist idea of opposing the effective and efficient administration, even when it is technically possible.
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As a tax with social roots, property tax is based on the premise that the accumulation of the property or the value of the property is a symbol of wealth, and the lack of property is synonymous with poverty. Perhaps because of this, the naked property, being the subject of the tax, directly defines how much tax is to be paid according to the value of the tax, although the general rule indicates that the recorded value differs from its real market value, thus, producing tax distortions.
Looking at the case from another angle, we have that the tax administration identifies the real estate as independent taxpayers of its owner, even if it is the one who checks in.
In strict accordance with this, which follows the legal line, before the delinquency of the property tax, it is not possible to go to other resources or assets of the owner to collect the existing delinquency, otherwise it would be committing an abuse of authority. It suffices to remember that a public official can only act to the extent permitted by the law and that the tax arrears of a property merit execution.
Otherwise, it is the income tax, whose delinquency allows the tax administration to seize and auction off the assets and other assets of the debtor taxpayer, including the real estate property owned by them, even if they do not have delinquency.
Returning to real estate, in an investigation on the property tax a few years ago, we were able to determine that Dallas’ combined property tax rate which is the highest in the region. The alternative rate, although still superior to that of neighbors, is a good attempt to improve competitive position to attract the investors.
Nevertheless, as a point of sale in favor of Dallas, we must recognize the exemption of the tax under study on improvements which reaches up to 20 years, exemption from the same tax offered by the figure of family patrimony, discount of the freezing of said tax as a benefit to retirees and pensioners, and exemptions granted through special incentive laws on tourism, reforestation, education and old town. The property tax is only caused when you have properties. To contact the best Dallas Property Tax Consultants, visit cmi-tax.com.