The property tax is local government's main source of revenue. Most localities tax private homes, land, and business property based on the property's value. Usually, the taxes get paid monthly along with the mortgage payment. Payments then get made for the property owner. Examples of personal property often taxed are cars, boats, recreational vehicles, and livestock.
Property taxes account for more than three-fourths of the revenue raised through taxes on wealth.
Other taxes imposed on wealth include inheritance, estate, and gift taxes. Taxpayers with the same total income may not have the same ability to pay. By lowering one's taxable income, these exemptions and deductions support the basic principle of taxing according to ability to pay. Those with high taxable incomes pay a larger percentage of their income in taxes. Since the goods get taxed at the same percentage, those with lower incomes pay a larger percentage of their income in sales and excise taxes.