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The Curious Bag
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Real estate tax is a fee charged by a governing body in a state to owners of real estate within the state. The amount owed is a percentage of the value of the property and is paid annually.
Building Value
Building value is the estimated market worth of a building located on a piece of land. The value of the building is factored into the overall value of the real estate property.
Land Value
Land value is the estimated value of a piece of real estate without a structure placed on it.
Uses of Tax Receipts
Real estate tax income collected by governmental entities is used to fund budgets for such public services as schools, police, hospitals and road maintenance.
Effects
The real estate tax percentage charged by a state can influence the number of real estate properties bought and sold in the state each year, which has a direct influence on the population and income of a state.
Tax Assessor
A tax assessor is a state government employee who places a financial value on a piece real estate for determining the real estate tax rate percentage.
Source:
NuWire Investor: Real Estate Taxes
Internal Revenue Service: Tax Tips--Real Estate
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