Final answer:
Property taxes are taxes imposed on assets, such as homes, land, and businesses. Local governments determine the value of the property and apply a proportional tax rate to that value.
Step-by-step explanation:
Property taxes are taxes imposed on assets, such as homes, land, and businesses. Local governments determine the value of the property and apply a proportional tax rate to that value. Property taxes are generally collected in one or two lump sums at the end of the year.
The collection of property taxes can be problematic as it is highly visible and unpopular. In response to tax rate increases, many states have placed limits on regional governments' ability to raise property taxes.
This trend began with the passage of Proposition 13 in California in 1978, which capped real estate tax and stopped reassessing properties for tax purposes when a home is sold.