This week marks my last working away from the office while travelling. I opted for researching the history behind Property Taxes and how they are limited in some states. Before this research, I had a loose idea about what Property taxes were, but I was not aware they were as important as they are, being critical for many public services that benefit entire local communities. I have recently heard news about Property taxes in Florida, as there is a battle to make them more common or to push back on them, either way it is an important tax to be informed about. Property taxes are both the oldest and largest large income source for both state and local governments, funding a large variety of different services such as schools, health care, and more. Due to the fact that property values grow at constant rates, despite hard national financial times, these taxes remain stable compared to other taxes like sales tax or income tax. And so, because of this long term stability, property taxes are great, especially for local governments looking for a constant stream of funds to support schools, roads, and safety, even with this said, some states do not favor the property tax. The way property taxes work, in simple terms is: Market Value x Assessment Ratio from 0-100% = assessed value – exemptions = taxable value x Sum of All Relevant Millage Tax Rates = Property Tax Before Credits – Homestead Credits & CIrcuit Breakers then finally = Property Tax Owed. As far as who actually pays these property taxes goes, it usually falls on almost every household and business in the United States, even renters. Property taxes make sense because the money goes directly back to the community in the form of roads, schools, and public safety for example. Property taxes seem to affect the middle class pretty heavily, as for many in these tax brackets, properties are a big source of income, but higher tax brackets have other sources, affecting them unevenly. Racial disparities can also manifest, large mansions are more difficult to assess for value than regular housing units, and sometimes in poorer families, property taxes are too harsh. However, it must be emphasized that local and state governments should thrive to maintain and improve property taxes, working to improve the tax to be better, for everyone.
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