character Tax – Pros and Cons

character tax can be the fairest and at the same time the not so fair tax collected by municipalities.

Two of the calculating factors of how it can affect what an individual will pay for this kind of tax are where you live and a person’s economic condition.

already though we all can appreciate the good points of owning a home vs. renting, when it comes to character tax, renting is by far the better option. States will collect character tax on the following:

Any additions to the character such as improvements to the land

Land itself

Any structures that are not long-lasting to the character

The assessment is commonly made by an exclusive county tax collector in each state. An individual’s character and land will be appraised of its value and afterward mailed as a tax payment notice. This usually is paid by a homeowner’s escrow amount stated on their mortgage.

Many times this can negatively affect a character or land owner as the taxes in a specific state can sometimes double or triple in amount and leave the homeowner unable to provide to pay their taxes, forcing them to sell their character or land.

People on a fixed income such as Senior citizens who have retired, can be greatly affected by the increase of character tax. The value of their homes increase, but at the same time they find themselves unable to pay their taxes because of their reduced income. Unfortunately, character tax doesn’t allow much wiggle room in the event of acts of character or personal tragedy.

Although 2.3 seems to be the average percentage for character tax, it varies greatly from state to state, making it seem highly unfair for certain states such as New Hampshire, as it is a high 4.9 percent.

It also seem unfair when states like Alabama pay 1.3 percent and however just a little distance away in nearby Georgia would be required to pay 2.6 percent, then already more in Florida at a rate of 3.1 percent.

So who determines how the money generated from this income is spent or in some situations wasted? The state legislatures will determine this along with the decision to increase or decline character tax and how frequent it is collected.

already though character tax can absolutely help states with income,the amount of character tax to be paid can be a calculating factor in one’s decision where to reside to unprotected to the American Dream of land or home ownership.

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