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Taxes

Property Tax

Also called: council tax, real estate tax, millage rate

Property tax is an annual levy on real estate, based on an assessed value and a local rate, and it's the main funding source for US schools and local services. It's a wealth tax on one illiquid asset, which is why it hits asset-rich, cash-poor retirees hardest and why exemptions and caps for them are near-universal. Assessments can be appealed, and a successful appeal compounds every year afterwards.

Formula

Property tax = Assessed value × Local tax rate

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