Final answer:
Property taxes are taxes imposed on assets, including homes, land, and businesses, and are a major source of revenue for local governments. These taxes are considered progressive as property ownership is often concentrated among higher income groups. Property values can vary based on the economic health and desirability of an area, and property taxes fund local government services.
Step-by-step explanation:
Property taxes are taxes imposed on assets, including homes, land, and businesses. The value of the property is determined by a government official, and a tax rate is applied to that value. Property taxes are collected by local governments and are a major source of revenue. They are considered progressive because property ownership is often concentrated among higher income groups.
The collection of property taxes can be problematic as they are highly visible, collected in lump sums, and often unpopular. There may also be legal or constitutional limits on raising property taxes in some states. Property values can vary based on the economic health and desirability of an area, and significant parcels of land may be tax-exempt. Property taxes fund local government services, such as police departments and public parks.