The property tax may be regressive even though wealthy people own much more taxable property than do poor people. This possibility arises because

Question

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Property taxes on rental property and business property are often transferred to tenants or customers through increased rents or prices, respectively. This means that even though wealthy people may own more taxable property, the burden of the tax may fall disproportionately on lower-income individuals who rent or purchase goods and services from those property owners. This makes the property tax potentially regressive.

The Property Tax May Be Regressive Even Though Wealthy People