Property tax is a real estate ad-valorem tax, considered a regressive tax, calculated by a local government, which is paid by the owner of the property. The tax is usually based on the value of the owned property, including land. The local governing body will use the assessed tax to fund water and sewer improvements, provide law enforcement and fire service and other items deemed necessary. Deeds of reconveyance do not interact with property taxes.
Collected property taxes are used by the governing body of the jurisdiction in which the property is located. The money funds education, road and highway construction, public servants, and other services that benefit the community-at-large. Property tax rates and the types of properties taxed vary by jurisdiction. As such, when purchasing a property, it is essential to scrutinize the applicable tax laws.