Real and Personal Property. Real and personal property is subject to property tax each year based on its value, unless a specific exemption is provided by law.
For the purposes of property taxation, real property is defined as land and all buildings, structures, fixtures permanently affixed to the land, or improvements thereon.
Personal property falls into two categories—tangible, and intangible. Tangible personal property consists of things that have a physical existence. Intangible personal property consists of rights and privileges having a legal but not necessarily physical existence. Local governments are statutorily prohibited from imposing a tax on intangible property.
A county, city, or town may levy a graduated tax on personal or business net income if the jurisdiction makes a corresponding reduction in the amounts collected in local sales and use taxes, public utility taxes, property taxes, or in the case of cities, business and occupation taxes. A reduction in existing taxes must be made prior to or in conjunction with a jurisdiction levying a personal or business net income tax.
A jurisdiction must prioritize corresponding reduction in the following order:
Once a jurisdiction has reduced the amounts collected in existing taxes by no less than 75 percent, the jurisdiction may increase the personal income tax schedule at a graduated rate of $5 per $1 decrease in existing uniform taxes. Graduated rate increases may not exceed the current federal income tax rate schedule, adjusted for inflation.