A Listly List - Property taxes have traditionally been a major source of revenue for state and local governments. In Texas, property taxes are high compared to most other states, partly because Texas does not have a personal state income tax. Texas property taxes are used only top fund local government. At the local level, property taxes are used primarily to fund school districts, county government, city government, and municipal utility districts (MUDs). They are also assessed by a variety of other entities such as fire department and community colleges. - The three primary elements in calculating property taxes are: and Texas property tax appeal | O'Connor