| U.S. real estate properties are taxed by their federal | | | | used by the municipalities to be able to improve the |
| and state governments. The taxes of these properties | | | | vital infrastructures and public facilities like sewers, |
| are basically the major source of local government | | | | schools, libraries, fire station, parks, hospitals, roads and |
| revenue. Property tax rates which are in percentage | | | | bridges. |
| form would usually be decided by city councils, town | | | | The laws on the different real estate property |
| boards, village boards, county legislatures and school | | | | aspects, as well as the forms of property tax actually |
| boards and are collected every year by municipalities | | | | vary from one state to another. But, there is a |
| like counties, cities and districts. Annually, around | | | | standard formula that is used in computing property |
| September or October, budget hearings are | | | | taxes on homes. The usual process would involve the |
| conducted by the board to be able to find out exactly | | | | multiplication of the property's assessed value with the |
| how much funds would be needed for their operations | | | | prevailing tax rate. |
| the succeeding year. The tax rate would then be | | | | The property tax rate is also known as millage rate, |
| determined through dividing the total taxes of the | | | | millage tax or mill levy. One mill would be equal to a |
| board by the jurisdiction's total assessed value. | | | | thousandth of a dollar. The owner of a property would |
| There is a special purpose to property taxes, as the | | | | need t pay a dollar for each $1000 that is taxable. |
| funds that are collected from the taxpayers would be | | | | |