Property tax is an ad valorem tax. This means that the value of a parcel of land or some sort of personal property is what the actual tax will be based upon. Property tax is usually mandated by the city government instead of the U.S. government. Those who live within the city limits have to pay taxes on their property. There are three different types of property covered by property tax, and these are land, improvements to land, and personal. The combination of land and improvements is what most people end up paying property tax on. This combo can go by the name of real estate, realty, or real property. There are three ways that property tax can be expressed. Percentages, permilles, mill levies, and millage rates are all ways to tell of the assessed value of a property.