06/10/2026
Property taxes are the primary tool for financing local governments, comprising over 27 percent of total state and local tax collections in the US.
Local governments rely heavily on property taxes to fund schools, roads, police departments, fire and emergency medical services, and other services associated with residency and property ownership.
The property tax won’t win any popularity contests with homeowners, but it still has an important role to play in public finance.
Property taxes are largely rooted in the benefit principle of taxation and tend to be more economically efficient than alternative sources of tax revenue.
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