Real Estate Blog

In the US, property taxes collected is one of the major sources of revenue for the local government. These taxes can subsidize programs and public services like law enforcement, road fixes and maintenance of public buildings like schools. It can also be used to fund local courts, libraries, parks, civics centers and other community programs.

Property tax is collected on an individual’s real or personal property, which is why it can be called realty tax. Aside from property, like real estate, it can be collected from possessions like vehicles, boats, motorcycles, campers, etc. Taxing personal property may not be present on all states.

The property is assessed and the tax is calculated based on the market value of the property or the real estate. Its market value will be multiplied with the current tax rate. The tax rate depends on the tax levy of the community. To determine the tax levy, the local government would first determine the sources of income, aside from property tax. Once the budget is already determined, the revenues from other sources will be deducted from the budget. The remaining amount would be the tax levy.
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