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Real Estate Property Taxes

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  Real Estate Property Taxes How does state and local property taxes work? A. Jurisdictions in all 50 states and the District of Columbia impose property taxes. Most property tax revenue comes from local levies (county, municipal, township, school district, and special district) on land and improvements to it, but some states also tax personal property (such as machinery, equipment, and motor vehicles). HOW MUCH REVENUE DO STATE AND LOCAL GOVERNMENTS RAISE FROM PROPERTY TAXES? While property taxes are a significant source of local government revenue, they are a very small revenue source for most states (table 1). State governments levied property taxes in 36 states in 2017, collecting $16 billion in revenue, or 1 percent of their own-source general revenue. (Own-source revenue excludes intergovernmental transfers.) Meanwhile, local governments collected $509 billion from property taxes in 2017, or nearly half of their own-source general revenue. Property taxes are the large...