Property Taxes
Did you ever notice that when you put the
words "The" and "IRS" together, it spells
"THEIRS?" ~Author Unknown
Property Taxes…

When buying a home/condo you will need to
account for your property taxes.
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As a RENTER you do not pay property taxes
directly, but your landlord does, so this is already
factored into your MONTHYLY RENT PAYMENT.
The STATE OF PENNSYLVANIA does not
collect taxes on real estate or personal
property.
 Instead, those taxes are reserved for the


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Local governments
Counties
Municipalities
School Districts
Property Taxes Cont…
 In most areas of Pennsylvania all
three groups will collect real estate or
property taxes.
 Rates differ depending upon the
 county,
 school district
 municipality in which you live.
Property Taxes Cont…
 What Property is Taxed?
Property taxes in Pennsylvania apply only
to real estate,
 That means land and buildings.
 It is not collected on cars, business inventory, or
other personal property.
 What property is not taxed?
 Certain types of property are exempt from
property taxes in Pennsylvania
 places of worship
 places of burial
 charitable and educational institutions
 government property
How to calculate property taxes
 Property taxes in Pennsylvania are based
on
 Millage rates (measured in mills) which are set
by individual municipalities and school districts.
 In other words, property taxes in Pennsylvania
vary from one county to another, and even
from one town to the next.
 The amount of property tax you will owe is
based on:
 a combination of your assessed property value
(as determined by the county assessment office)
 millage rates of the municipality and school
district in which you live.
What is a Mill?
 What's a Mill?
 Property tax rates in Pennsylvania are
referred to as millage rates, and they
are figured in mills.
 One mill is equal to 1/1,000 of a dollar.
 Basically, for every $1,000 in taxable
value, a property owner will pay $1.00 in
taxation per mill.
Find out how much…
 Property Tax Calculator
 Thankfully, the Internet provides several
websites with built in property tax
estimation calculators.
 Use the chart to figure out your annual
and monthly property tax.
Relief!
 There a some property tax
rebate/relief programs established to
help homeowners manage their
housing costs.
1. Pennsylvania Property Tax
and Rent Rebate Program:
 Taxpayers who QUALIFY can file for
this and be reimbursed up to $500 a
year for the amount they paid in
property taxes or rent.
 This program is available for persons
65 years and older or disabled
taxpayers who meet other conditions.
 Applicants need to file according to
guidelines established.
Pennsylvania Homeowner Tax
Relief - Act 72:
 In an effort to provide property tax
relief, this act allows school districts
to use tax revenue from slot
machines installed at racetracks and
casinos to lower local property taxes.
 This property tax relief program is in
the beginning stages, and we are
slowing learning about the ups and
downs of this.
Pennsylvania
Homestead/Farmstead
Exclusion - Act 50:
 This act allows participating Pennsylvania school
districts, counties and municipalities to offer property
tax reductions to permanent residents of their
jurisdiction.
 This homestead exclusion reduces the assessed
values of single family homes, condominiums, farms
and other places of permanent residence, reducing
the property taxes on the property.
 The Homestead exclusion is only available in
jurisdictions which have approved it.
 Careful attention to detail needs to be applied when
filing for this.
Homeowners Insurance
 This is essential in order to protect
the huge investment that you are
making when buying a home.
 The costs vary greatly on the age,
condition and location of the home.
 Use the equation on your paper to get a
ROUGH estimate of you monthly
homeowners insurance payment.
Renters Insurance
 The monthly cost for renters' insurance will
vary depending on the state in which you
live, the type of coverage you select, the
amount of coverage you elect and the
amount of your deductible.
According to the Independent Insurance
Agents & Brokers of America, the average
cost of renters insurance is $12-$15 per
month for $30,000 of property coverage
and $100,000 of liability coverage.
Liability Coverage
 Liability Coverage protects you from arising
from bodily injury or property damage for
which you are legally responsible.
 Examples:
 Someone slips and falls on your property
 Broken pipe causes damages to someone else's
property.
Homeowners Association Fee
 This fee is applied to condo and
townhouses only. It is used to pay for the
overall maintenance of the property so that
the tenant/homeowner does not have to
worry about it.
 The more amenities (fancy stuff) the higher
the fee.
 Use the average figure of $100 a month.
 Add that to your monthly condo payment.
Utilities
 Utilities are sometimes included in
your monthly rent payment.
 Utilities include:
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Electric: $70
Gas: $25
Water/Sewer: $33
Trash: $27
Cable/Internet: $100
 Total: $255.00
Phone- Landline/Cell
 Phone Bill:
 Cell Phone:$60
 Landline: $22
 Add these numbers to your chart on
page 3 and total your housing costs for
each dwelling.
Renting: Moving Costs
 FMR+LMR+CD+SD=Total Move in cost.
 CD- Cleaning deposit equal to one months
rent.
 SD- Security Deposit is usually 50% of one
months rent.
 Do the math for the move in cost of your
rental apt. and rental home.
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