Why do we Pay Property Tax?
When new businesses come into a community, they generate income. In these cases, your tax bill could actually decrease, because the property tax could be spread across more properties. Changes in a government’s budget also could increase or decrease your tax bill. Local governments make a lot of money from sales taxes. If the government can’t get funding through other sources, a change in the property tax calculation could increase your tax bill. If your town government wants to build a new high school, the town government’s budget might increase. When people build new houses on previously undeveloped land, property value increases. Likewise, a smaller budget could decrease your bill.
Tax assessors began examining other property on the land, including structures, farming equipment and livestock. Colonists paid taxes on all property, whether real estate or personal. Why? Governments figured, for example, that if Lord Garish had 1,000 cows, three stables housing 30 horses, a castle and a windmill jammed onto a small piece of land, Lord Garish could afford to pay more property tax than Lord Frugal, who had only 13 cows and a butter churn on a large piece of land.
Taxable property includes any real estate that is not owned by a government, such as houses and companies with brick-and-mortar places of business. Religious organizations, like churches, are usually not taxable. Just as a country has borders and a city has limits, property is divided into assessment areas or assessment units. A tax assessor still assesses the value of government and exempt church real estate, however. An assessment area might be a city, a county or even a school district.
