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 ?
Some property owners will experience lower assessments than they would under current practice, but those lower assessments may be largely offset by higher mill rates.
He said that on the last occasion, his assessment was reduced by $15,000, but the "high" mill rate remained.
The 10 counties which experienced the largest percentage increases in taxes have an average mill rate of 357 - about 20 mills below the state average.
In response, the town has established reserves in the 2006 budget and capital reserve fund to minimize the larger mill rate increase that would have been required.
The city's declining GO bond debt structure incorporates future issuances of approximately $7 million, pending voter support, every two years without impact to the current debt service mill rate.
The 2006 budget provides for the fourth consecutive increase in the mill rate, with incremental revenues supporting a spending increase of 6.
4% mill rate increase and a one-time additional $2 million federal aid reimbursement payment.
Still, corrective measures beyond the mill rate increases adopted since 2004 will need to be considered to retain the current level of flexibility due to the heightened level of spending associated with the operation of three new schools and the associated debt service costs for the nearly completed construction program.
5 mill rate reduction in fiscal 2006, the adopted budget includes a 6% increased board of education appropriation that is offset by additional educational state aid and fees associated with the active real estate market.
Education property tax mill rates have been lowered, and while some property owners may see taxes go up because of assessments that went up more than average, overall the changes to rates keep the revenue from education property tax neutral in terms of re-assessment.
The commodities would be available at the shops at the rate less than 10 to 15 percent from market rate and in most of the cases at ex mill rates.
But overall, we are holding the line on education property tax mill rates.