Municipal taxes are taxes levied by local governments and typically take the form of property taxes. They pay for a number of civic needs.
What Municipal Taxes Fund
The local school budget is typically funded via municipal taxes. In addition, municipal taxes go to support fire and police departments, hospitals, and services such as trash removal and road repair.
Frequency of Assessment
Based on a variety of factors, property values change over time; municipal governments reassess property values on a rolling basis to ensure appropriate taxes.
Percentage of Value
The actual municipal tax that an owner must pay is a relatively small percentage of the assessed value of his or her property.
Since they do not own property, renters do not directly receive a municipal tax bill. However, the cost of the municipal tax on their property is typically passed on to them by landlords in their rent.
In some localities, citizens have undertaken a so-called tax "revolt," putting caps on how high the government can raise their municipality taxes. In such situations governments are often incapable of expanding or improving services, such as school systems or libraries.