What are "Property Taxes"?

Property taxes are levies imposed by local governments on real estate, calculated based on the assessed value of the property. This means that the amount a property owner owes in taxes is directly related to the value of their real estate, which is determined by taxing authorities through assessments. Local governments utilize these taxes to fund essential public services such as schools, emergency services, and infrastructure maintenance.

This assessment process typically evaluates the market value of a property, and the resulting tax obligation is used to derive revenue necessary for the government to provide various local services. As such, the statement regarding property taxes accurately reflects their function and basis in relation to real estate.