Final answer:
Property tax is a proportional tax applied uniformly as a percentage to the value of property. It funds essential local services and is progressive economically, but collection in lump sums makes it a visible and sometimes unpopular tax. Legislation can also affect its uniformity and assessment frequency.
Step-by-step explanation:
Property tax is commonly referred to as a proportional tax because the tax rate is applied uniformly to the assessed value of a property. In a proportional tax system, all property owners are charged the same percentage of their property's value, regardless of the overall amount. This contrasts with progressive taxes, where higher incomes or property values are taxed at higher rates, and regressive taxes, where lower incomes end up paying a higher percentage of their income in tax. Local governments typically assess property taxes based on the property's fair market value to fund essential services such as police, fire departments, and public parks.
While property taxes are considered progressive in the economic sense due to their concentration among higher income groups, they remain highly visible and unpopular taxes because they are collected in lump sums. The reliance on property tax revenue can cause disparities among taxpayers, especially when considering limitations imposed by legislation like California's Proposition 13, which restricts reassessment and taxation increases for properties.