The Tax Foundation

Property Taxes

The property tax is a tax on the market value of privately owned property, including land, cars, business inventory, etc. Although the property tax is the principal source of revenue for localities, broad consensus has not been reached on the basic issue of whether property taxes are regressive, proportional or progressive. Property tax liability is calculated by multiplying the nominal property tax rate by the assessment ratio (the percentage of the value of the property that is taxed) by the value of the property. In 2004, state and local governments across the United States collected an estimated $318 billion in property taxes. Approximately 97 percent of this total, $308 billion, was collected by local government units including counties, cities, and school districts.

Additional questions about property taxes? Call (202) 464-6200.


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