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Town

Taxation

A town is permitted to raise revenue through taxation only if the state legislature has granted it the power to do so. Township boards or the electors at a town meeting can decide the amount of taxes needed for township purposes, or the normal operating expenses of the town, such as for maintenance of the highways. A small part of the tax may be set aside for miscellaneous or emergency expenses. In addition, a town may properly impose taxes for special purposes, such as the erection of a town hall. All property not legally exempt within the limits of a town or a township is subject to assessment and taxation by it.

Upon the levy of a town tax, inhabitants must pay the tax to the appropriate officer, ordinarily the town tax collector. Failure to do so, or failure to pay taxes on property correctly assessed, will entitle the town to a lien on the property, which means that the property cannot be sold until the taxes have been paid. After a number of years prescribed by statute, the town can have the taxpayer's property sold at a TAX SALE to pay the overdue taxes plus any accrued interests and costs. Any excess funds will be given to the taxpayer.

Additional topics

Law Library - American Law and Legal InformationFree Legal Encyclopedia: Tonnage tax to UmpireTown - Powers, Meetings, Boards Or Councils, Taxation, Claims - Taxpayer's Suit