TAXES

Can anyone inform me of the difference between real estate taxes and property taxes?

Thanks,

Daniel,

I'm not an expert, either, but having been in business and from having lived in a few states, this is how I have come to view it:

Depending on the laws and how taxes are defined in your state, they could be different things, or they could be, for all practical purposes, the same thing.

We tend to think of real estate taxes as taxes on real property, such as a home that we live in or rent to others, land we own, etc. But, it can also be reffered to as a property tax in that it is a tax on real property.

We tend to think of "property tax," on the other hand as a tax on "personal" property such as an automobile, a boat, a trailer, a tradesman's tools, a retailer's inventory, a store's fixtures, a manufacturer's machinery, and so on.

They may be taxed at the same, or at different rates. Both are often used as a source of revenue for municipalities.

By way of example, here in Connecticut, there really is no difference. All property is taxed at the same rate whether it is real property or personal property (which is the "other" property tax), and combined that provides the revenue for the cities and towns.

Often, most citizens are exempt from personal property tax except for specific items such as automobiles, boats, trailers, RVs, etc. Otherwise, you would be required to inventory and pay personal property tax on the furniture in your home, the tools you own, jewelry, etc. etc. Some states only exempt personal property tax on individuals that is below a certain value, and personalproperty tax must be paid on property over a certain value. Thus, if you owned a large valuable art collection, for example, you might have to pay personal property tax on it. Businesses and self-employed people, however, usually are not exempt from personal property tax. Self-employed people, though, are generally required to pay personal property tax only on the property they use in their trade or business.

In a prior post I mentioned that in our 55+ community the HOA entereed into a lease agreement (in principle at this point) with the developer. There are two liens on the community center building. PROPERTY TAX was a major issue. The HOA
board was not going to sign the lease and pay the property taxes. In Louisiana the terms property tax, personal property tax and real estate tax are used.
The Assessor of the Parish stated that since we were a non-profit association
leasing a facility, that the property will not be assessed any property tax.
The developer owns the property and should be liable for the tax. How can the
Assessor legally decide to exempt the tax on the property? I have contacted the
Louisiana Tax Commission on the subject and their legal department is researching
the legality of the decision of the Assessor.
The lease is defined as a Triple Net Lease, which requires the Tenant to pay real
estate taxes. Thus, my question as to the difference between real estate tax and property tax.

Does anyone know what Form 3586 is? Is this charged to the HOA or the management company? I'm in California, thank you in advance!

Is this charged to the HOA or the management company?