Property taxes

Property taxes can be either taxes on ownership of property of taxes on WEALTH, depending on the base used. Measurable characteristics of property that could be used as a base include weight, size, or value. Most property taxes collected in the United States are ad valorem taxes (assessed in relation to the value of the property). Ad valorem taxes on real property, fixtures, and PERSONAL PROPERTY provide a significant source of revenue for local governments (municipalities) and are sometimes collected by state governments. The existence and level of property taxes often influence consumers’ and business managers’ decisions where to locate. Often homes and businesses are located beyond city limits in order to reduce property taxes.
Most local governments impose a property tax, but the taxing systems differ from county to county and from state to state. Each jurisdiction (state, county or city) has its own rates, assessment dates, exceptions to the tax, and methods for determining the value of the property subject to the tax. Property taxes are usually computed by the government, which then sends a bill to the property owner.
Because ad valorem taxes are based on value, the process requires the application of judgment to a variety of acceptable valuation theories to derive a mutually agreeable valuation level for both the taxpayer and the taxing jurisdiction. A significant portion of the revenue for local governments is collected via property taxes, which are considered to be among the least regressive of taxes collected in the United States.
Linda Bradley