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