What does the term 'budget' refer to in the context of property taxation?

In the context of property taxation, the term 'budget' specifically refers to the funds required by each taxing jurisdiction. Budgets are developed to outline the financial needs of government entities, such as local municipalities, school districts, and counties, for a given fiscal year. These budgets detail the necessary expenditures to fund public services and operations, which may include education, public safety, infrastructure, and other community services.

The budgeting process takes into account projected revenues, including property tax income, but primarily focuses on the costs that need to be covered. After determining required funds, taxing jurisdictions assess property values to generate sufficient tax revenue to meet their budgeted needs, thereby establishing the tax rates.

While total assessed value, estimated tax revenue, and overall tax rates are important components of the property taxation system, they do not encapsulate the broader concept of a budget as it pertains to funding requirements. The budget provides the framework and justification for why certain tax rates and assessments are needed in the first place.