ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: Property tax is the annual amount paid by a land owner to the local government or the municipal corporation of his area. The property includes all tangible real estate property, his house, office building and the property he has rented to others.

Detailed explanation-2: -Taxpayers in all 50 states and the District of Columbia pay property taxes, but the tax on real property is primarily levied by local governments (cities, counties, and school districts) rather than state governments.

Detailed explanation-3: -3.1 Property tax is an annual tax on real property. It is usually, but not always, a local tax. It is most commonly founded on the concept of market value. The tax base may be the land only, the land and buildings, or various permutations of these factors.

Detailed explanation-4: -LPT is a self-assessed tax charged on the market value of residential properties in the State.

Detailed explanation-5: -Property taxes help finance the salaries and supplies for firefighters, police, EMTs and a range of public safety workers. Beyond these essential institutions, property taxes also provide the funds necessary for legal payouts for misconduct, personal injury lawsuits, etc.