property tax

noun

Definition of property tax

: a tax levied on real or personal property

Examples of property tax in a Sentence

Recent Examples on the Web

The tax law limits deductions for state and local taxes, including property tax, to $10,000. — Jonathan Levin, chicagotribune.com, "Miami woos New York homebuyers fleeing over tax law," 13 Sep. 2019 Like several other schools, Harvard has long faced criticism for underpaying the amount the City of Boston asks for, in lieu of property taxes, to fund municipal services. — Tim Logan, BostonGlobe.com, "Harvard renews its affordable housing program with $20m," 20 Aug. 2019 As a result, according to the mayor, the city will have to pay for the contract through financial reserves and the general fund, which is heavily dependent upon property taxes, as opposed to direct billing to consumers. — Frederick Melo, Twin Cities, "State Supreme Court may rule this week on St. Paul’s trash ballot question," 20 Aug. 2019 Among the taxes listed are property taxes or assessments on public improvements, income or excise taxes, personal property taxes, and interest. — al.com, "Toll bill signed by Ivey could save state millions on I-10 project, if it happens," 12 July 2019 Lower income taxes, higher property taxes The $81.7 billion budget reduces the state's lowest two income tax brackets. — Molly Beck, Milwaukee Journal Sentinel, "Tony Evers uses his vast veto power to raise school spending another $65 million, wipe out Tesla provision," 3 July 2019 Owners will be responsible for hotel occupancy and property taxes, and pay 25 percent of their homesharing revenue to NGD. — Patrick Sisson, Curbed, "New hotel and homesharing hybrid creates investment vehicle for Airbnb," 2 July 2019 Chief among those are the state’s exorbitant property taxes, which often provide the lone funding for local school districts. — John Hirschauer, National Review, "New Jersey Governor Phil Murphy Abandons the ‘Millionaires Tax’," 1 July 2019 The projects are largely funded by the county’s Conservation Futures Tax, a property tax of about 3.8 cents per $1,000 in valuation that’s been in place since 1982, and which collected about $18.6 million last year. — David Gutman, The Seattle Times, "King County seeks to preserve 5,000 acres for parks, open space by the end of 2020," 27 June 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'property tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Last Updated

18 Sep 2019

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The first known use of property tax was in 1808

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More Definitions for property tax

property tax

noun

Financial Definition of property tax

What It Is

Property tax is a tax on property -- usually real estate -- as determined by an assessor.

How It Works

Let's assume you own a house. The property tax assessor in your municipality will likely assign a value to the house and calculate your property taxes based on that assessed value. It is important to note that assessed value is usually not the same as a property's fair market value.

For example, if the property tax rate is 4% and your house's assessed value is $200,000, then your property tax liability equals (.04 x $200,000) or $8,000. The assessed value is often computed by incorporating the purchases and sales of similar properties in nearby areas.

Why It Matters

Property taxes are usually collected by cities or counties, and the funds usually pay for the local school, fire and police districts.

Tax rolls disclose the taxable value of all the property in a taxing authority’s jurisdiction. They are the basis for most property tax calculations, and the size of the tax roll therefore can have a huge influence on the operating budgets of the taxing authority. Tax rolls also usually disclose the owner of each piece of property, a description of the property and other details.

Source: Investing Answers

property tax

noun