What is a property tax?

A property tax is defined as a tax levied on real estate or owned properties. It is calculated based on the value of the property and is typically used by local governments to fund various public services, such as education, infrastructure, and emergency services. The tax is usually assessed by the local tax authority and can vary widely based on location and property value.

This type of tax is significant because it directly ties public funding to property ownership, meaning that individuals and businesses are financially responsible for contributing to the services they benefit from based on their property holdings. This contrasts with other tax types, such as taxes on income, sales, or luxury goods, which are assessed based on different criteria unrelated to property ownership.