Property tax on real estate

Response 1) Property tax is defined as an ad-valorem tax on the value of the property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region, or municipality. Many advantages have been outlined in the textbook. The government provides numerous systems to aid property owners to get some relief for property owners. The tax relief may be provided because the owner could be elderly therefore eligible for exceptions. You may also receive a deduction on taxes because you live in the dwelling that you are paying taxes on. You could also receive a deduction from property taxes if for example; the dwelling is used for a haven. Government properties also receive quite a few tax base exemptions.

While there are so many pros for property taxes there also lay some cons. “Property tax exemptions to individuals fail to target property tax relief to those individuals most in need (Mikesell, 2018).” This is a con that is most recognized because I have known quite a few individuals that have lost their property because they could not afford the taxes. There is always a large lump sum and individuals seem to get overwhelmed when they see it and if they cannot pay it normally they just drop it in the back of the pile of bills. There is also a misunderstanding between the appraised value and the property tax. “In the beginning, God created heaven and earth (Genesis1:1 King James Version).” The only thing that I am disputing is the taxes for the land that God created.

Mikesell, J. L. (2018). Fiscal Administration. Boston: Cengage Learning.

Response 2) A user fee is derived from government sale of licenses to engage in otherwise restricted or forbidden activities. People pay user fees for the use of many government-affiliated services and facilities as well. User fees are not user charges or public prices, even though they may share some equity and fiscal advantages of prices. These fees seldom involve the direct sale of a good price but rather involve payment for some privilege granted by the government. An example of a user fee is a parking garage. A regulatory fee are payments based on government authority to regulate particular businesses or activities for benefit of public that stem from sovereign powers of the government. Regulatory fees means payments, whether designated as license fees, permit fees or by another name, which are required as an exercise of police power and as a part of or as an aid to regulation of an occupation, profession or business. An example of a regulatory fee is a registered auditor.

Beneficiary-based taxes are levied on bases correlated with use of particular government services. These taxes include the transportation-related excises (highway, airway, inland waterway, and harbor) and the excises on fuel and equipment associated with boating safety programs. Liability-based taxes are levied for the purpose of abating hazards, discouraging damaging activities, or compensating injuries. They include excises on certain chemicals that are dedicated to the Hazardous Substance Trust Fund and taxes on certain fuels dedicated to the Leaking Underground Storage Tank Trust Fund. These are the four classes that narrows down the fees and charges.

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