Property Tax

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DEFINITION of 'Property Tax'

A tax assessed on real estate by the local government. The tax is usually based on the value of the property (including the land) you own.

INVESTOPEDIA EXPLAINS 'Property Tax'

This tax is mainly used by municipalities for repairing roads, building schools and snow removal, or other similar services.

RELATED TERMS
  1. Assessment

    Occurs when an asset's value must be determined for the purpose ...
  2. Listed Property

    A specific class of depreciable property that is subject to a ...
  3. Local Tax

    A tax assessed and levied by a local authority such as a county ...
  4. Property

    1. Anything over which a person or business has legal title. ...
  5. Land Value

    The value of a piece of property, including both the value of ...
  6. Reassessment

    The process of redetermining the value of a parcel of real estate ...
RELATED FAQS
  1. What are the three "nets" of an NNN lease?

    A triple net (NNN) lease is a type of real estate lease in which the tenant is responsible for paying the building's property ... Read Full Answer >>
  2. What are the differences between single, double and triple-net leases?

    A net lease is a real estate lease in which the tenant pays, on top of his rent, one or more of the following expenses: property ... Read Full Answer >>
  3. What are the best and worst states to pay taxes in?

    Most people can probably guess the two worst states for taxation in the U.S. – New York and California. The two best, Wyoming ... Read Full Answer >>
  4. What's the difference between regressive and progressive taxes?

    The U.S. federal tax system and local and state tax systems are complex in that they combine progressive, regressive and ... Read Full Answer >>
  5. What are the potential pitfalls of owning REITs?

    Real estate investment trusts (REITS) are corporations, trusts or associations that own or finance income-producing real ... Read Full Answer >>
  6. How are real estate taxes calculated?

    Real estate taxes, or real property taxes, are the annual ad valorem taxes assessed by local governments on land and any ... Read Full Answer >>
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