A tax levied on a property. Most property taxes are ad valorem taxes, meaning that they are based on the value of the property. Other property taxes are special assessments or improvement taxes that are levied to fund specific public improvements and that are not based on the value of the property. Property taxes are also known as real estate taxes.
Taxes based on the value of property are levied and collected by local and state governments throughout the United States. The amount of the tax is typically based on the assessed value of the property. The assessed value is multiplied by the property tax rate to determine the total tax due. The assessed value is a value determined by a government property tax appraiser. Typically, these values reflect the approximate market value of the property.
The property tax rate is set by a governing authority such as a city council, school board, or park district board. A primary use of property tax revenue is for school funding, but different jurisdictions use property tax revenue for a variety of activities. Though you may make only one property tax payment, it is usually a collection of amounts due to multiple taxing authorities such as cities, counties, school districts, public hospitals, etc.
