If you are following the list of items in the home ownership category, you may notice that property taxes were not included in that list. You are right!
Usually property taxes would be housed with the tax documents located in Box 3. However, after using this system for a number of years, I have found that when I need these tax documents, I look in the home ownership file first. If I don’t find it there, then I look in the tax file.
To assist me in using my time wisely, I have chosen to move the property tax documents from the tax file to the home ownership file. Making this change is my personal preference. If you would look in the tax category first, then place these documents there. Find a system that works for you that will allow you to use your time wisely.
Continuing with our filing system under the home ownership category, we have added our deed(s) and homeowner’s (or renter’s) insurance documents. Behind these documents, I have included the following property tax papers:
1. The current property tax notice. This is an annual statement sent from our county.
2. Copy of tax payment. Since this payment is made by our mortgage company from our escrow account, I make a copy of the mortgage statement showing that the taxes were paid. In the event I need to prove that the payment was made, I have the copy of the receipt with the tax notice.
3. Notices of Classification, Appraisal, and Assessment of Real Estate Tax. These documents list our home’s assessed value for tax purposes. Any countywide reassessment changes will be included on this form.
These items are organized with the current year on top and paper clipped together. (I like using paper clips rather than staples. The staples leave marks when I need to replace documents. The paper clips do come off periodically, but overall, they work great.) I then place these tax documents behind the insurance paperwork for easy access when needed.
Next week we will continue adding documents to this category of home ownership. I hope you are taking steps to getting your paperwork organized. It is a process that is worth your time and energy.
Question: Do you prefer using staples or paper clips to keep your documents together?