Levy
Definition and meaning of Levy in real estate.
A levy is the legal process by which a governing authority or creditor imposes a tax, fine, or seizure of property to satisfy a debt. In real estate, it most commonly refers to the assessment of property taxes by a local government.
In more detail
Local taxing districts, such as school boards and city governments, calculate the levy based on their budget requirements and the total assessed value of properties in their area. Once the tax rate is certified, the levy is collected from property owners, typically on an annual or semi-annual basis.
If a property owner fails to pay the tax levy, the government can place a tax lien on the home. In extreme cases, a creditor or government agency can execute a levy to seize and sell the property at a sheriff's sale to collect the unpaid debt.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Tax levy, property tax assessment |
| Who pays | The property owner pays the levy to the taxing authority |
| Required by | Local governments to fund public infrastructure and services |
A county government imposes an annual property tax levy on homeowners to fund local public services, including schools, roads, and emergency response.
Frequently asked questions
What is the difference between a tax levy and a tax lien?
A tax lien is a legal claim placed on a property as security for a debt. A tax levy is the actual seizure of the property or funds to pay that debt.
Can you appeal a property tax levy?
Property owners cannot typically appeal the overall tax levy rate, but they can appeal the assessed value of their specific property to lower their tax bill.
Related terms
Sources & references
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