Property Tax Essay

Taxation has evolved throughout history as a method of funding government functions. The US government began taxing its people by imposing tariffs on certain items such as liquor, tobacco, sugar, and legal documents. Currently, there are taxes on almost every function. The IRS regulates income tax laws, central appraisal districts control property tax values, and there is a state sales tax on most purchases across the country. Taxes are difficult, if not impossible, to avoid. Benjamin Franklin stated “'in this world nothing can be said to be certain, except death and taxes” (Isaacson 463). Revenues from property taxes are used to fund public schools, hospitals, and local governments. I will discuss the history of property taxes and compare the Texas property tax rate to the rest of the country. Property taxes are more efficient than income tax and a better way for local governments to collect revenue from taxpayers. The

Conversely, property tax collections as a percentage of total tax revenue decreased. After World War II, the economy grew at significant rates along with people’s incomes and total property tax collections. However, property taxes as a percentage of total revenue began to drop. In 1927, property taxes accounted for 97.3% of total local tax revenue; today the total is less than 75% (Carlson). Jurisdictions in all 50 states and the District of Columbia have property taxes. The property taxes provide jurisdictions with a constant revenue stream. The property tax rate is usually calculated as a percentage of the assessed property (usually land and improvements to land) multiplied by a standard tax rate. School districts heavily rely on property taxes as a source of revenue. Once source states that in 2007, independent school districts in the United States received roughly 77 percent of their revenue from property tax collections (Tax Policy