What is property tax?
As you know, every property is an asset which is subject to taxes and property tax is an annual fee paid by a property/land owner to the state government. This tax could be paid either to the local state government authorities or the Municipal Corporation, depending on government policies. The government appraises the monetary value of each property and taxes will be calculated based on this value. It is the duty of the municipality of a particular area to determine the property tax, which can be paid either on an annual or semi-annual basis.
Why are these taxes collected? This tax amount is used to develop local amenities including road repairs, maintenance of parks and public schools, etc. Property tax varies from one area to another and can be different in different cities and municipalities.
The word “property” in this context refers to all tangible real estate and includes houses, office buildings and premises rented to third parties.
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