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Local governments rely heavily on property taxes for their funding. Nearly three-quarters of local tax revenues come from them, and they are an important municipal source of funding for K12 education, police and fire departments, parks, and other services. By affecting the costs of purchasing, renting, or investing in homes and apartment buildings, property taxes can have an impact on local housing markets. Local governments can therefore more effectively design their tax systems by having a better understanding of how changes in property taxes affect households and community development.
Examining the effects at the property level within a community is the best method to comprehend the effects of any current or proposed property tax proposal.
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