In real estate, what does the term 'tax levy' refer to?

The term 'tax levy' refers specifically to the legal authorization to collect taxes. This action allows the government, whether at the local, state, or federal level, to enforce the collection of taxes from property owners, based on assessed values and applicable tax rates.

Understanding the distinction is essential: while assessing property values involves determining how much a property is worth for tax purposes, and the reduction of property taxes pertains to lowering the amount owed, neither captures the essence of 'tax levy.' Additionally, the completion of property sales is unrelated, as it involves the transfer of ownership rather than tax collection. Therefore, the designation of 'tax levy' centers on the legal basis for tax collection, ensuring that the necessary funds for public services and infrastructure are gathered efficiently.