Yes, property tax is based on current price. The price is set by local government. They offer an assessment, you are given notice, and it can be appealed. Dif

Yes, property tax is based on current price. The price is set by local government. They offer an assessment, you are given notice, and it can be appealed. Different agencies have very different approaches. How much property tax you pay is based less on your the rate, and more on the assessment philosophy. Lower rates tend to correspond to more aggressive assessment, and higher rates with more lenient assessment. The taxes go mostly to the local school district and water district. These are very specialized local governments that focus on one service. Collection is done by the city or country, depending on … things. They get a very small cut, but not much. Cities are funded by sales tax. Counties are funded by state revenues (I live in a “weak county” state where counties are agents of the state). State revenues are funded by income tax. So speciality districts = real estate tax, municipalities = sales tax, counties = mostly state revenue, state = income tax, federal government = income tax and magical debt Everything except federal varies in state by state basis.