property taxesPaying taxes on a piece of land is a standard that goes back many decades in history.  Property taxes are levied on land that may or may not have a structure built on it and are used by local governments for necessary expenditures.

Who makes me pay taxes?

State and local governments are typically the entities that levy property or millage taxes on land with or without structures.  Not all residents will pay the same taxes for a variety of reasons.  The location of the property in terms of the taxing bodies will cause millage rates to fluctuate.  For instance homes located within public school districts may be taxed where those outside of those districts may not be taxed.

How are taxes calculated?

Although the exact formula for how taxes are calculated varies from region to region, in general it is based on the value of the real estate or land.  Land is assigned a market value as is a home situated on land also known as real estate.  The market value of these elements will determine the amount of property tax a person pays based on a predetermined millage rate.  Millage or property tax rates are typically voted on by residents.

Where do my property taxes go?

The final destination of tax revenue varies based on the location and entity that is the taxing body.  In general however, taxes go to local school districts, for maintenance of infrastructure such as roads, bridges, and public areas.  Portions of the money go to local public organizations such as libraries.  Depending on the needs of a community there may be other uses for property tax revenue that apply.

Property and other taxes are an essential part of our society.  Many may wonder why it is they have to pay them.  All they need to do is think about the roads they travel every day or the schools they send their children too and even the public parks they walk their dogs in.  A person would have to travel pretty far outside of where they live in order to use resources that their taxes are not paying for.