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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Property Tax


Synonyms:land tax, millage tax, property levy
Filed Under: mortgages, real-estate, taxation
Tags: mortgage, realty, taxes
 

Definition of property tax

property tax
1. A levy or tax imposed by a municipality on real estate and personal property. The amount of tax varies depending on the property value.

Related Terms and Acronyms:

  • assessment rolls   Lists of taxable property.
  • classified property tax   A local government's levy on real estate that varies depending on the use of the property. Usually, commercial property is taxed more heavily than residential property where a classified property tax exists.
  • conveyance tax   A tax on the transfer of real property.
  • escrow account (EA)   An account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
  • local improvement charge   A fixed annual fee levied by a municipality against specific real property for a specific period which amortizes the capital costs of local improvements such as sewers, paved roads, etc. This charge is in addition to real estate taxes.
  • local taxes   Taxes imposed by local governments (municipalities) to pay for its services. These taxes are in addition to Federal and Provincial taxation.
  • mill rate   A unit of taxation that is a set ratio made by the city or municipality in reference to property taxes.
  • personal property taxes   Tax paid on real property, intangible, or tangible property. To differentiate between real property and personal property, the tax assessing official must consider the manner in which property is attached to or secured at the location. Also called property taxes.
  • principal, interest and taxes (PIT)   Principal, interest and taxes. The components of a monthly mortgage payment.
  • Tax Instalment Payment Plan (TIPP)   A popular property tax payment plan that allows you to pay your taxes monthly without any penalties or additional charges.

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