What is Property Tax?
Property tax is a financial value that an individual or other legal entity is required to pay on a property. The property tax is calculated and determined by the municipal government who assigns a tax assessor who then goes and assesses the local property. Property tax is usually recalculated annually. The amount one is taxed is dependent on how much land one owns and where their property is located geographically.
Why is Property Tax important?
Property tax is what funds public attractions such as community pools, libraries, city road work, and other community projects. It is paid directly to your local government to help fund law enforcement, fire departments, and any local government initiatives.
When a property tax is left unpaid, the taxing authority will most likely assign a lien against the property. This means that the property holder can obtain access to the property if the debts are left unpaid.
Property Tax in Startup Wars
For example, if the user chooses to start their company in New York City they will be taxed a larger amount than if they chose to start their company in Columbus. The amount the user is taxed is dependent on where they choose to set up their business.
This reflects how each different state uses their own process for deciding tax rates and more. This is important information to consider when starting a business.