Property Tax

Property taxes are usually required by a state or municipal government, rather than the Federal government.
These taxes apply to the owner of a property, and are payable even if the property is vacant. The taxes are 
not a part of a mortgage or home loan, although they are the biggest source of revenue for local governments.

A property is appraised and a tax rate is established by an assessor. This rate is usually in the form of a 
percentage of the value of the property, or a certain proportion of the value of the real estate from which they 
are derived. Cities and counties collect these taxes.

If needed, the value of the property can be judicially appealed by the property owner in court. Each state 
has its own property tax laws.