Final answer:
A lien is placed on taxable property at the start of the tax year, which is removed once taxes are paid. Property taxes, deemed progressive, face public disfavor due to lump sum collections and have led to legislative limits in some states.
Step-by-step explanation:
At the beginning of each tax year, a lien is placed on taxable property. It is removed when the property taxes are paid. Property taxes are a form of tax levied by local governments based on the assessed value of property, which includes homes, land, and businesses.
This type of tax is often seen as progressive, as property ownership tends to be higher among higher income groups. However, the reliance on property tax revenue can create issues for local governments, particularly because these taxes are collected in lump sums rather than smaller increments like sales tax, making them quite visible and often unpopular with taxpayers.
Several states have enacted legislation to limit the ability of local governments to increase property taxes, often in response to public discontent. These tax laws can result in disparities in tax amounts paid by residents in similar homes.
Municipal governments use property tax revenues to fund various services, and while these taxes are generally due annually by a certain date, overpayment can lead to a tax refund, where the government returns the difference to the taxpayer.