Local governments rely heavily on the revenues produced by taxes on real property. Many government services depend upon these taxes. The government schools are a notable example.
However, are these real property taxes Biblically legitimate? In The Institutes of Biblical Law, R. J. Rushdoony argues that they are not. He writes:
Since Scripture declares repeatedly that “the earth is the LORD’S, and the fullness thereof” (Ex. 9:29; Deut. 10:14; Ps. 24:1; 1 Cor. 10:26, etc.), a land tax is not lawful. A tax on the land is a tax against God and against His law-order. God Himself does not tax the land which He gives to men as a stewardship under Him; He taxes their increase, or their production, so that the only legitimate tax is an income tax, and this is precisely what the tithe is–an income tax. Beyond that, what a man gives is a freewill offering; the tithe is a tax, not an offering.
The subject of taxation belongs properly to both the sixth and eighth commandments. Ungodly taxation is theft. But the modern power to tax is the power to injure and to destroy, and it is thus basically connected with the sixth commandment. A Biblically grounded tax structure will protect and prosper a social order and its citizenry, whereas a lawless tax structure spells death to men and society. (283)
I suspect Dr. Rushdoony would make a distinction between a tax on the transfer of real property, which would arguably look much closer to an income tax than a land tax, and a yearly tax on the property itself. Thus, transfer taxes on real estate would appear to be Biblically legitimate, while local property taxes would not.