The tax base is the total assessed value of all taxable property within a municipality, providing the foundation from which property tax revenue is calculated. A larger tax base allows lower tax rates to generate the same revenue, while a smaller base requires higher rates. The tax base composition (ratio of residential to commercial to industrial assessment) affects tax policy options and property class distribution of tax burden. Tax base growth through development or value appreciation increases fiscal capacity. Tax base characteristics vary significantly between municipalities—some have diverse bases with strong commercial and industrial components while others are predominantly residential. Understanding tax base characteristics helps evaluate municipal fiscal health and tax competitiveness.