Definition

• A municipal tax levy is an amount of money that each property owner must pay annually in order to fund the town's activities. The tax is a percentage of the value of all homes and privately-owned land. The only properties affected are those inside the town or city limits.
  
  

Property Taxes

• A municipal tax levy is often used to refer to all of the levies that a city has imposed in the form of property taxes.
  
  

Limits

• Municipal tax levies are limited by each state's laws. A municipality is not allowed to charge more than the citizens are able to pay. There are also restrictions on the types of things that the municipality can fund through a tax levy. These, too, are regulated by state statute.
  
  

Exceptions

• Not all of the municipal taxes collected are used for running the town. In some areas, a percentage is set aside to fund only schools. Other areas may set aside special funds to fund the police force and other special departments.
  
  

Disclosure

• Not all property taxes are municipal. County taxes and taxes to fund the school systems may also be levied on the value of a person's property. The rates and ways these funds are levied varies from one area to another.