Death and taxes. Everyone knows the saying. But what's not so certain is just how many different forms taxation takes and - as everyone who has April 15th circled in red on their calendar knows - the government seemingly invents taxation categories to maximize their revenue. For example, real estate and property tax are two completely different categories. The difference seems so minute that it borders on satire.

Thankfully, this time there isn't a difference. Well, not really.

Real estate taxes are commonly referred to as property taxes but the difference is the Internal Revenue Service (IRS) does not recognize the term property tax. In other words, most people call property tax what the IRS calls real estate tax. The IRS uses the official term "real estate tax" when describing taxes on immovable property. Real estate taxes are imposed on immovable property that are permanently attached to the ground, such as houses, buildings, farms, cabins, etc. Homeowners pay a real estate tax directly to their local tax assessor or it is included in their monthly mortgage payment. Real estate taxes are based on the value of the property that is permanently attached to the ground and is owned by the homeowner. Real estate taxes vary by each state and the amount is determined by multiplying the real estate value of the home by the tax rate set by the local government.

The confusion in terminology comes when you introduce personal property tax, which is slightly different. Generally, personal property tax is a tax imposed on movable assets. The IRS considers RVs, cars, boats, livestock, furniture, planes, and mobile homes as movable assets. These movable properties are taxed annually for their registration and paid through the state's motor vehicle bureau.

If, for example, you were to buy an RV then you would owe a personal property tax for that purchase since it's a movable asset. Then let's say you own a plot of land where you want to park that RV. In total, you would be paying a personal property tax (RV) and a real estate tax (plot of land).