What is property tax?

[riya]

I am attempting to learn more about property tax. I am told that it is a tax that has to be paid to the local administration by the owners or possessors of homes or land often depending on the land and property value. The thing is I am not clear on how it is calculated and why the rates vary in different locations.

Please define in simple terms what is property tax, how it operates, and what is used to determine the amount you pay? Also, are there typical exemptions or reductions of property taxes?

 

[danisjohn]

Property tax is an annual or semi-annual tax that a property owner pays to their local government. The tax is calculated based on the property's assessed value and is a primary source of revenue for funding essential public services, such as schools, police, fire departments, road maintenance, and libraries.