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Understanding Taxes on Destroyed Property

Taxes On Destroyed Property

If personal property taxes apply in an individual's state, there will be many different rules they may have to learn. Each state is different. However, many states have similar laws regarding the taxes of an individual's destroyed property. Personal property taxes and regular property taxes on destroyed property may change if there is a disaster.

There are many reasons why someone's home or business may be physically destroyed. Property that is in an area where hurricanes, tornadoes or frequent storms occur may frequently undergo changes.

One may be able to pay a smaller dollar amount in personal property taxes if they own destroyed property. If an individual's property is either fully or partially destroyed during the current tax year, then the value of the property will go down. An individual must take steps in trying to lower their personal property taxes and property taxes.

If one owns property that is destroyed, they should start trying to get their property taxes lowered by filing a claim with their local assessor. Each county will have an assessor whose job it is to determine the value of anything that is not exempt from tax laws.

There may be a time limit on how long one has to file a claim of destroyed property. The claim should be filed as soon as possible. The assessor will see how much the value of the property and the personal property has been reduced. Most people will be entitled to lower taxes due to the fact that the monetary value of the property changed drastically.

There are some exceptions to the destroyed property tax reduction. If one is arrested for arson or any type of behavior that showed they intentionally destroyed the property, they are exempt. The reduction is only for people who lost their home or business due to an accidental fire a natural disaster. Some insurance companies call those things acts of God.

The lowered taxes will only be applicable while one owns the destroyed property. If a home is rebuilt, then the assessor must come back to reassess the property and calculate the new rates.

NEXT: Watch Out for Personal Property Taxes Penalties

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