Why doesn’t the property tax on the United Year End Property Tax Letter match the amount of property taxes I paid in my assessments?

The Year-End Property Tax letter is sent to United members before January 31 each year. It is provided to assist them in substantiating deductions they might consider on their income tax returns.

 

The amount for Property Taxes on the Property Tax Letter (Letter) is based on the actual taxes paid by United, in the year in which United pays them. The County’s fiscal year is July 1 to June 30. For example, for 2011, the Letter would include the actual amounts paid in April (the second half of the County’s 2010-2011 Tax Year) and December (first half of the County’s 2011-2012 Tax Year). Due to this timing difference between the County’s fiscal year and United’s calendar year, the property taxes included in members’ assessments (carrying charges) do not include the property taxes in the same year as United pays them – there is a delay.

 

Another difference arises because, according to the tax code, the amount of the deduction is limited to the ratio of United’s “Member Net Revenue” to “Total Net Revenue” as defined in the law. This percentage changes slightly each year as the ratio changes. Due to this limitation, members may not be able to deduct the full amount of the property taxes included in their Tax and Interest letter. 

 

The Letter will state any supplemental taxes paid by the resident that were included in the member assessment in 2011. The Letter does not reflect any property tax refunds received by the members.

 

Also, the assessment may include supplemental property taxes which are based on actual supplemental bills received from the County.