Property tax room refers to the taxing capacity that provinces allow municipalities to utilize. Since municipalities are created by provincial legislation, provinces can limit how much municipalities can raise through property taxes, either through explicit caps or practical constraints. The concept of 'room' suggests available taxing capacity that hasn't been fully utilized. When provinces reduce their education portion of property tax, they create more 'room' for municipalities to increase their portion without raising total bills. Discussions about property tax room often arise in debates about downloading provincial responsibilities to municipalities and whether local governments have adequate revenue authority.