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Where Does the Money from Property Taxes Go?
Written by Amber Keefer; Updated May 24, 2018
Cities, municipalities, counties and school districts rely on property taxes to raise money for their budgets.
Local governments then use the money they collect from property taxes to help fund the many public services they provide. However, the more money a local government spends, the higher the property tax bill goes to make up for any budget shortfalls.
Local School District
Funding the public school system accounts for a significant percentage of money from local property taxes. Although both the federal and state governments kick in to help foot the nation’s education bill, local school districts still rely heavily on property taxes for financial support. How much of a local community’s property taxes help support schools within the district varies depending on the local government’s tax base. Unfortunately, local governments that have less of a property tax base may collect less money to support the local school district even if they charge higher tax rates.
Local Police Department
A good chunk of the tax dollars you pay to your local government goes toward paying the salaries and benefits of public safety officers. Local public safety agencies also hire support personnel including the staff who take the 9-1-1 calls. Add to that the cost of maintaining police and fire stations and keeping police and fire vehicles on the road – all things a city needs to keep its public safety departments running. Since money from fees and fines isn't enough to fund these services, city and municipal governments generally have to raise property taxes if they need to hire more public safety workers, including police officers, firefighters and other emergency response workers.
Maintaining Streets
Money from property taxes goes toward maintaining most of the nation's public streets and roadways. Property taxes also pay for routine maintenance that ensures public safety on the roads. Maintenance includes making the necessary street light and traffic light repairs within the township or city limits. Although general maintenance also includes street cleaning, snow removal and patching potholes, sometimes tax dollars allocated for road maintenance are used to make improvements. Local governments often share with homeowners the cost of replacing sidewalks and curbs.
Non-ad Valorem Assessments
In some taxing jurisdictions, property taxes pay for curbside garbage collection as long as the property is located within the city limits. Taxing districts sometimes add the fee to collect and dispose of trash to the property tax bill as a non-ad valorem assessment. A non-ad valorem tax is a special assessment that isn’t based on the property’s value, although you pay the fee for the special assessment at the same time you pay your property tax bill. From time to time, additional special assessments may be added to your property tax bill to help fund improvements to local bridges, water and sewer lines, storm drains or other improvements that benefit your property.
https://homeguides.sfgate.com/money-property-taxes-go-52339.html