What is the definition of property tax in real estate?

Property tax is defined as a tax levied on the assessed value of real estate holdings. This tax is typically based on the estimated market value of the property as determined by local tax assessors. It is a primary source of revenue for local governments, which use the funds to support essential public services such as education, road maintenance, emergency services, and other community functions.

The assessed value of a property can consider various factors, such as the size, location, and condition of the real estate. Property taxes are usually calculated as a percentage of this assessed value, leading to annual tax bills for property owners based on where the property is located and the local tax rates set by the governing authorities.

Other options presented do not reflect the accurate definition of property tax. A fee for maintaining public infrastructure is typically a separate service charge, not a tax. A charge based on the size of the property could relate to zoning fees or other assessments but does not directly define property tax. A government levy based on rental income pertains to income tax rather than real estate tax, as it targets earnings rather than property value itself.