What is the purpose of property tax?

The purpose of property tax is primarily to fund local government services through a tax that is based on the value of real property. This type of tax provides essential revenue for municipalities, counties, and other local government entities, supporting services such as education, public safety, infrastructure maintenance, parks, and other community services.

Property taxes are typically assessed on the value of properties, meaning that as the value of real estate increases, so too can the amount of property tax owed. This creates a direct link between property ownership and the financial means to support community needs, ensuring that funding is available for the upkeep and development of local facilities and services that benefit all residents.

Other options do not accurately describe the function of property tax. Funding private improvements is not the goal of property tax; rather, it is used to support public services. Additionally, property taxes are not meant to cover broker commissions or maintenance fees for landlords but are a public revenue source designed for broader community benefits.