First time home buyers often mistakenly assume they can afford a larger home than they actually can by looking only at the monthly mortgage payments they would be making. The fact is that whether you're looking at a resale home here in Stamford, Connecticut or a new home in Ontario, there are additional costs associated with ownership. Property taxes are the biggest.

What is property tax?

In order to provide city services such as snow removal, trash collection, road maintenance, and parks and recreation, cities need a source of revenue. In Toronto, that source is the owners of Toronto condos and other real estate. Here in Stamford, it's you. Rather than relying on donations or imposing a blanket fee on everyone, cities single out the people who require them: i.e. the people who own property. Both owners of residential property and commercial properties are charged property taxes.

How much are property taxes?

Most of the time property tax is calculated as a percentage of the value of the land plus the buildings on it. Tax rates are set by the city finance committee and may be different depending on where in the city you live or the type of property (i.e. commercial or residential) that you own. For instance, a business like a Toronto bed & breakfast in the city center might be charged more than a residential house in the suburbs.

When rates are calculated as a dollar amount per $1,000 of value, they're known as Millage Rates. This is the system in use in Stamford. In Stamford, you pay $16.82 for every $1,000 your property is worth plus $26.50 per $1,000 of value for each car you own. These fees are paid in three installments in July, November, and January.

How do I know how much my property is worth?

Your property is assessed annually by an assessor from the city council. The date of assessment is October 1st, but the assessor will send around notices before then that property assessments are coming. The assessor will list all improvements (houses, sheds, etc) to the property as well as personal property (cars) and judge their worth based on fair market value for that location at that time (in other words, not as if it were a Puerto Vallarta villa or a rural cottage). You can look up your valuation online on the city website at www.ci.stamford.ct.us

What if I don't pay?

Homeowners late to pay their taxes are generally charged a fee (1.5% per month in Stamford) while homeowners who owe significant amount of back taxes can find their homes being repossessed and auctioned off by the city. So if you have a Toronto condo or a Stamford house - pay your taxes!