What is the purpose of real property taxation?
Property taxes are a major source of revenue for local governments. In fact, their single most important source of revenue is normally real property taxation, including special property-based taxes such as business taxes. Other sources of local government revenue usually include licenses and permit fees, receipts from fines and penalties, investment income, grants and transfer payments. In most cases, property taxes in Canada are imposed to Cover the costs of local government that are not met from other revenue sources or transfers from federal and provincial governments. Property taxes are the main source of funding for the provision of local services, such as roads, water, sewage, sanitation, snow removal, fire and police protection, building and plans inspection. As a result, property taxes commonly are perceived as taxes paid for the benefit of using local government services. These taxes represent “a way of proportioning the net costs of local government among all taxpayers on the
