Types of Tax

Don't tax you, don't tax me, tax that fellow behind the tree.
Senator Russell Long, 1977

The ad valorem property tax is the primary revenue source for local government in the United States. Some states tax real estate heavily and exempt personal property. Others tax both. Still, others rely more on income tax, sales/use tax or they tax sins. Then there are those who boast of their low property taxes and instead tax intangible property. A very important benefit of the property tax over the sales tax or income tax a tax is that the revenue always equals the tax levy, unlike the other taxes, which can result in shortfalls producing budget deficits. The property tax always produces the required revenue for municipalities' tax levies.

The fact is that government costs money. It doesn't really matter where you are located. Government costs about the same everywhere subject only to minor variations.

Nationwide, local governments are are looking to increase revenues from constant sources such as the property tax. As a result, property taxes will be increasing at double-digit rates again during 2009.

In Illinois, there is pressure on the local assessors to increase tax revenues. This pressure is political in nature and is resulting in higher assessments and a search for alternative sources of revenue.

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