Counties, cities, towns, villages, school districts, and special districts each raise money through the real property tax. The money funds schools, pays for police and fire protection, maintains roads, and funds other municipal services enjoyed by residents. The tax rate is determined by the amount of the tax levy to be raised from all, or part, of an assessing unit, and the unit's taxable assessed value. The assessment is determined by the assessor and is based on the value of the property, less any applicable property tax exemptions. Every parcel of real property in an assessing unit, no matter how big or how small, is assessed.
Real property is defined as land and any permanent structures attached to it.
Though all real property in an assessing unit is assessed, not all of it is taxable. Some, such as religious or government-owned property are completely exempt from paying property taxes. Others are partially exempt, such as veterans who qualify for an exemption on part of the property tax on their homes. A property's assessment is a percentage of its market value. Market value is how much a property would sell for under normal conditions.