How is the total tax on a property primarily computed?

The total tax on a property is primarily computed by applying a tax rate to the property value. This method is standard in property taxation, where the assessed value of the property is determined, and a specific tax rate, often expressed as a percentage or a millage rate (amount per thousand dollars of value), is applied to calculate the total tax owed.

Using property value as the basis for taxation ensures that taxes are proportionate to the value of the property. This is important for equitable taxation, as properties of varying values contribute taxes that reflect their market worth.

The other methods mentioned do not typically relate to how property taxes are calculated. Square footage is generally not used directly in the computation of property taxes, as the value per square foot can vary significantly based on numerous factors, including location and property type. Averaging underlying costs might be relevant in different financial calculations but is not a standard approach to determining property tax. Lastly, while intangible taxes may apply in certain contexts, they do not constitute the primary means of calculating property tax.