Real property tax is a tax levied on land and permanent structures attached to it—what most people mean when they say 'property tax.' Real property includes houses, commercial buildings, industrial facilities, and the land they sit on. This contrasts with personal property (movable items like vehicles and equipment), which may be taxed differently or not at all. Real property tax is calculated based on assessed property value multiplied by applicable tax rates. It's the primary revenue source for Canadian municipalities, funding local services from police and fire to roads and recreation. Real property tax is also called ad valorem tax because it's based on value.