Knowledge Focus: Property Tax Exemption
Property Tax Exemption
A tax exemption is simply the removal of the assessed value or a portion of the assessed value from the tax base. State and local governments allow homestead exemptions for certain real property. There are two key types of exemptions: homestead and non-homestead exemptions, which include preferential assessments that vary by state.
Homestead exemptions include the general homestead exemption for property which you use as your permanent residence. Also, other homestead exemptions and preferential assessments are made available for various situations: senior citizens, model homes, historic designations, remodeling/improvements, disabled veterans, percentage freezes, etc.
Non-homestead Tax Exemptions are real estate properties exempt from paying property tax. State constitutions allow exemptions for certain property types: state government, local government, school districts, religious, cemetery, charitable organizations, etc.
