Property tax in the United States

Most local governments in the United States impose a property tax, also known as a millage rate, as a principal source of revenue. This tax may be imposed on real estate or personal property. The tax is nearly always computed as the fair market value of the property, multiplied by an assessment ratio, multiplied by a tax rate. It is generally an obligation of the owner of the property. Local officials determine values and may be disputed by property owners. For the taxing authority, one advantage of the property tax over the sales tax or income tax is that the revenue always equals the tax levy, unlike the other types of taxes. Property tax typically generates the revenue required to fund municipalities' tax levies. One disadvantage to the taxpayer is that the tax liability is fixed, while the taxpayer's income is not.

The tax is administered by the states, which delegate the task to their local governments. Many states impose limits on how local jurisdictions may tax property. Because many properties are subject to tax by more than one local jurisdiction, some states provide a method by which values are made uniform among such jurisdictions.

Property tax is rarely self-computed by the owner. The tax becomes a legally enforceable obligation that attaches to the property on a specific date. Most states impose taxes resembling property taxes, and some also tax other types of business property.