The Real Property Tax

Abstract

The property tax evolved from ancient beginnings into a uniquely American form of taxation called the general property tax. In Europe taxes on property were often outgrowths of the various feudal obligations owed to the king or landowner. The idea that the “general property tax”–that is, a uniform ad valorem tax upon all kinds of property–should provide most of the tax revenue for state and local governments was widely accepted. In legal language, property is neither a physical object, nor is it synonymous with wealth. The divergence between the meaning of wealth and property became even more significant as the economy became more complex. Periodic reform movements were built around the need for administrative reform and the adoption of nonproperty taxes by state governments. Ownership becomes important when property is exempted because it is owned or used for religious, charitable, educational, or governmental purposes.