Property Tax

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Property Tax


a type of direct tax on personal and real property. The property tax has been known since ancient Greece and Rome, where it was collected by the state and designated exclusively for military expenditures. During the period of feudalism the property tax became more systematic, and the property of craftsmen, artisans, and peasants was taxed. Noblemen and clergy were not included in the tax-paying estate and were freed from payment of the tax. The establishment of more flexible forms of taxation and the growth and differentiation of the objects of taxation led to replacement of the general property tax by separate taxes on buildings, land, and other types of property. With the development of capitalism, income tax replaced the property tax.

Property tax has been preserved as an independent tax in the United States, Great Britain, Canada, the Federal Republic of Germany, and a number of other countries. It is levied on the value of buildings, land, equipment, commercial and industrial facilities, and the like. Natural and legal persons who own or lease property pay the property tax. With rare exceptions, property tax rates are proportional. Even where there is a progressive rate of taxation, it is extremely small, which is very advantageous to the propertied classes.

The property tax goes to local budgets. In the United States in the mid-1960’s the property tax supplied about 88 percent of tax receipts in local budgets; in Great Britain, about 25 percent. Large landowners pass on the main burden of the property tax to the working people by including a significant part of the property tax in rent. The interests of property owners are protected in every possible way. Thus, in Great Britain, there is no tax on residential buildings not rented out or on buildings of religious organizations. Industrial, commercial, and transportation enterprises are usually subject to a favorable tax.

There was no property tax in tsarist Russia. After the October Revolution of 1917, a property tax was levied from 1922 to 1924 as part of a combined income-property tax in order to reinforce state regulation of the incomes of various segments of the population and limit the incomes of private entrepreneurs.


References in periodicals archive ?
The net effect on a homeowner's property taxes of changes in mill rates and reassessment is given by the following formula: percent change in property tax = percent change in mill levy + percent change in assessed value + (percent change in mill levy x percent change in assessed value) 100.
Preliminary proposals would increase the mill levy cap from its current rate of 6.
Rehoboth benefits from a mill levy imposed by the county, which is included in the total supplemental funding.
The district has benefited from voter support for mill levy overrides approved in 1988, 1998, 2003, 2005 and 2012.
The county is subject to maximum mill levy requirements; however, it maintains some flexibility due to its recent, discretionary mill levy reduction of 1.
State loans to school districts for debt service are more typically made in cases where the required mill levy to service school district debt exceeds certain predetermined levels.
5 mill levy and likely result in negative rating action.
RELIANCE ON SUPPLEMENTAL FUNDING: Rehoboth is highly reliant on sole community provider (SCP) funds and tax revenue from a mill levy for profitability.
9 mill levy which when added will increase ending cash balances over the five year period.