Property Tax is the most reliable and stable revenue source for the Government than any other tax - This is because the value of property is usually less susceptible to short term economic fluctuations than other major revenue sources.
Property Tax is difficult to evade since these are secured by the property - This ensures that a major segment of the population pays their due property tax.
- Property Tax systems are more open and visible than those for other taxes - The property owners have the right to examine the assessments and they are usually provided with a bill that shows their entire liability, which makes the full magnitude of the tax obvious. But this is not the case with the small amount of taxes collected as part of the purchase price in the form of sales tax or they are withheld from pay throughout the year along with many other items in the form of income tax.
The large lump-sums payments often associated with property tax are seen as a major disadvantage - Property taxes fall in the purview of unrealized capital gains which are not related to cash flow. This makes is difficult for the companies to make payments that are property rich, but cash poor.
There is often a misunderstanding of the relationship between appraised value and tax - This is a disadvantage when compared to sales tax or income tax which is usually a fixed-rate tax. The problem gets bigger when tax jurisdictions permit long or irregular periods between reappraisals as the applicable tax might increase significantly all of a sudden.
- Property tax appraisals may be perceived as inequitable, especially since assessment ratios differ between property classes - In most of the cases, appraisals may be truly inequitable. Lack of adequate state or local oversight demonstrates poor uniformity among comparable properties is a prime indicator of inequitable treatment.