Some items get taxed to discourage their use. This applies to excise taxes on alcohol and tobacco. Excise taxes are also used during a war or national emergency. By raising the cost of scarce items, the government can reduce the demand for these items. 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.