• Property taxes are the fuel that local governments -- counties, cities, school boards -- run on. Each county tax assessment office assesses the value of taxable property in the district, applies the local tax rate, then mails out the tax bills. Assessors are supposed to use entirely objective standards to evaluate property but the actual tax rate is set by local elected officials.
  
  

How Do Owners Know if They Qualify For Tax Exemption?

• County property appraisers can provide a list of exemptions available to residents, the Palm Beach County tax appraiser's office states. People who own the home they live in receive exemptions in many states; so do disabled veteran homeowners. The size of the exemption can be anywhere from a few thousand dollars to $100,000. Exemptions aren't automatic: Property owners have to file with the county to claim them, and may have to file year after year.
  
  

What Happens If Owners Don't Pay Taxes on Time?

• If taxes are late, local government will levy a penalty payment, the San Francisco county government states. If a property owner fails to make up the payment before the end of the fiscal year, the taxes are delinquent, resulting in a bigger penalty. If the taxes go unpaid for long enough, the government can foreclose on the houseto sell it and pay off the debt that way. The time frame and size of the penalties varies from state to state.
  
  

What Is Assessment Appeal?

• An assessment appeal takes place whenever a real estate owner challenges the value the assessor set on his property, the California Board of Equalization states. The time frame for filing an appeal should be available on the assessor's website, along with downloadable appeals forms. Owners can successfully challenge an appeal by proving that the assessor overlooked a legal exemption; that the assessment misstated a material fact, such as the size of the property; or that similar properties were selling for much less at the time of the assessment.
  
  

What Is Supplemental Tax Bill?

• Supplemental tax bills are filed when there's been a change in the status of the property, the City of Los Angeles states. If a homeowner adds a new wing to her house, for instance, the property will be reassessed. When property changes hands, the county may also apply a supplemental assessment.