What is the primary purpose of real estate taxes?

• A. To fund private developers
• B. To fund city, county, and school district public services
• C. To fund federal programs
• D. To fund state government

Answer: (B)

Real estate taxes are a local revenue source used to run the services people rely on day to day. The primary purpose is to fund city, county, and school district public services. Property taxes are calculated on the property's assessed value, using local millage rates to determine the amount owed; the resulting levy pays for police and fire protection, schools, roads and public works, libraries, parks, and other local programs. They are not intended to fund private developers; tax dollars are collected to support the government services that benefit everyone in the community. Federal programs are funded through federal taxes, not local property taxes. State government is funded through state taxes and appropriations; property tax revenue is allocated primarily to local governments, though some money may flow to the state through formulas, the core purpose remains local services.