What are "property taxes" used for?

Property taxes are primarily used to fund local government services. This includes essential services such as public education, infrastructure maintenance, police and fire protection, public transportation, and other community services that benefit residents. The revenue generated from property taxes is critical for municipalities to operate effectively and provide these services to the community.

Local governments rely heavily on property taxes because they are a stable source of funding based on the valuation of real estate within their jurisdiction. Unlike sales taxes or income taxes, which can fluctuate with economic conditions, property taxes tend to provide more predictable and consistent funding, allowing for better budget planning and service delivery.

The other options do not accurately represent the primary purpose of property taxes. Private land development projects, while they may indirectly benefit from local services funded by taxes, are not the main recipients of property tax revenue. Financial incentives for real estate investors fall under different types of economic development programs and subsidies rather than property taxes directly. Lastly, while property taxes can influence homeownership affordability, they are not directly used to subsidize home mortgages.