Area rating is a property tax system where different parts of a municipality pay different tax rates based on the services they receive. For example, urban areas with city water, sewers, and transit might pay higher taxes than rural areas with wells, septic systems, and no bus service. This approach is common in amalgamated municipalities that combined urban and rural areas with historically different service levels. Area rating attempts to align taxes with benefits received, so residents do not pay for services unavailable to them. However, it adds complexity to tax systems and can create debates about fairness and service equity.