Why do homeowners have to pay property tax?

Property taxes generally fund municipal or local services, from garbage disposal to police to road services to schools and hospitals. Generally, cities are reliant on property taxes because they have little other source of income; they are generally prohibited on levying sales taxes or income taxes. Though some advocate the removal of property taxes and the privatization of city services, many of said services are generally deemed to be too fundamental to civic order to be privatized.

Property taxes differ from one jurisdiction to another. In some areas, businesses pay a larger share of the property tax than homeowners, but the formula is generally the same: a certain percentage of the worth of the property per year. Additional taxes may be imposed on land transfers and sales. The justification for all these taxes are, again, for city services.