Taxes & Budget

How Local Property Taxes Fund Your Community

While income taxes go to the state and federal government, your local community is funded primarily through property taxes. This is the money that pays for the neighborhood services you use most.

1. What determines the tax?

Your property tax is based on two things: the "assessed value" of your home or land, and the "millage rate" set by local officials (like the city council or school board).

2. Where the money goes

In most communities, about half of all property taxes go directly to the local public schools. The other half pays for police and fire protection, local roads, libraries, and public parks.

3. The Appeals Process

If you believe your property's value has been estimated incorrectly, you have a right to "appeal" your assessment. This usually involves presenting evidence of recent home sales in your area to a local board of appeals.