Property Tax Law

One of the oldest forms of taxation in the US is that of buildings and land, commonly known as property tax. As a matter of fact, property tax law was introduced first, even before the introduction of sales and income tax. Despite the emergence of other taxation forms, no one will argue with the fact that property taxes are still the main source of revenue for the government. In general, property taxes are "ad valorem" meaning the property tax is based on your property value. When there is some modification in your property value, your assessed or appraised value also changes.

Tax Rates

Taxes to Financing

The majority of property taxing units levy taxes on personal as well as real estate properties. However, there has been an initiative by the government to get rid of taxing intangible property. This includes bonds, bank accounts, money and stocks. The most important thing to know about property tax is that it finances the services of your local government. The taxes you pay go to support roads, garbage disposal, public libraries, public schools, parks, fire and police protection and health programs.

Government Roles

Both state and local government have a role to play in property tax. In number of states the whole process of assessment, appraisal and collection is implemented by a state agency. Nine out of ten times, state agencies evaluate all of the operating properties of utilities and railroads.

Taxing units of local government have quite an important role to play in terms of implementing the various phases of property tax. A taxing unit, like city, town, educational institution or hospital is a legal entity of the government which includes appointed or elected officials that serve a distinct geographic location. The property tax is calculated by dividing the expenditure figure with taxable property value of the location. Imposed by the states constitution, rate limitations of property tax are common. In many states a maximum ceiling rate is set for each government class. As homes are situated in different tax districts, you can expect that total tax rates usually vary from one location to another.