Advantages and disadvantages of using property taxes to fund local services?
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Cities offer a number of services that we all consider to be essential. These inclue, police protection, fire protection, education, street maintenence and sanitation. What are the advantages and disadvantages of using property taxes to fund local services?
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Answer:
Advantage: Real property is something who's value can be determined. Through such avenues as the real estate market, if nothing else. It can be determined that in a particular area housing construction costs are, say, $68.00 per square foot. So a 1800 square foot home should 'cost' approximately $122,400.00. Disadvantage: Only the citizens who actually own their residences are supporting the services with their tax dollars. Those that rent do no pay property tax, but are likely using the services.
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