by Emily Hechler 
As a homeowner, one of the unavoidable expenses you’ll encounter is paying personal property taxes. You may have questions about how these taxes function and what they entail. Fortunately, this Q&A addresses many of the common concerns homeowners have about personal property taxes, providing clarity on how they impact your finances.
What is personal property tax? Personal property tax is a tax from your state due to your local county or city for owning personal property. This includes your house, cars, and boats. Personal property taxes are due at the end of the calendar year.
How are personal property taxes calculated? Each year, the county assessor’s office evaluates the home’s age, condition, market value, and type. This gives the property an assessed value. Once this value is calculated, the number is multiplied by the local tax rate to calculate how much you owe. Since your home is unique, your taxes may be different from those living in similar homes and neighborhoods.
How do I pay personal property taxes? In the fall, you’ll receive your personal property tax bill, which outlines the total amount you owe for the year. These taxes can be paid online through the Missouri Department of Revenue’s website. Alternatively, you have the option to escrow your taxes into your mortgage payment. Escrowing allows you to spread the cost throughout the year, making it easier to fit into your monthly budget. This method helps ensure the expense is manageable, avoiding the need to pay the entire amount at once at the end of the year.
What happens if I sell my house? If you sold your house this year, you paid for the personal property taxes prorated at the closing date. If you also bought a house this year after selling your previous home, you will have to pay personal property taxes prorated for the time you owned the home this year. This will appear on your bill.
Can I deduct personal property tax on my tax return? Yes! You can deduct the personal property tax of your home as an itemized deduction on your tax return in the spring. The IRS has certain requirements that must be met in order to make the itemized deduction.
How else can I get my money back? The Missouri Property Tax Credit Claim gives credit to disabled and senior citizens for a portion of their yearly taxes. The limit is $1,100 of credit. The actual amount will vary based on the total the individual paid in taxes and their household income. For more information about the credit or to claim your credit, visit the Missouri Department of Revenue website.
Be on the lookout for your personal property tax bill at the end of the year. Hopefully, you have a better understanding of how your taxes were calculated this year. If you’d like to escrow your taxes into you mortgage payment going forward and don’t have your mortgage through us, contact Alltru to refinance your mortgage and escrow your taxes. If you already finance your house through us, let us know you want to escrow your tax to start the process.
