Classified Property Tax – David Reecher
A classified property tax is a tax that varies depending on the use of the property. The value of a parcel of land varies greatly depending on its use and zoning. With this type of property tax, state and local governments can collect more taxes on properties that have a higher value. Take an acre of land. If that land is a wheat field, the taxes on the property will be low as agricultural land does not have high value except for crop production. If someone comes along and builds a house on that acre of land, the value of the property increases and the taxes go up as well. If someone tears down the house and builds a strip mall there, the value of the property will go up even more along with the taxes.