Introduction In most developed countries, property tax plays a significant role in local government. In Canada, Australia and the United States they represent the main source of revenue for municipalities. About half of municipal revenue in Canada comes from property taxes. In 2007, approximately $14 billion was collected from municipal taxes in the province of Ontario; this represented approximately 45% of all revenue collected by this municipality. Due to the revenue contribution of these taxes, the municipality has steadily increased these taxes on a per capita basis, from $864 in 1988 to $1,035 in 2007. However, it is still claimed that this tax contributes less than 3% of the GDP of the country, which implies that taxes have some problems that prevent their full use. Unpopularity There have been calls from the public to limit the ability of municipalities to reassess and therefore increase property taxes. This has likely inhibited the local government's ability to make maximum use of these taxes. The visible and volatile nature of this tax has been cited as the main reason for its unpopularity among taxpayers. Unpopularity is one of the major problems of this tax system. Property tax is considered a visible tax. This means that taxpayers know exactly what amount of taxes they pay and therefore demand an equivalent amount of service from their municipalities. The tax is visible because it is paid in a lump sum unlike other taxes that are withheld at source (income tax) or paid in small amounts after each purchase (sales tax). Likewise, the tax is used to finance services such as waste collection, road maintenance, police, among others. These services are very visible and therefore taxpayers...... middle of paper......05): 1-20.Locke, Wade, "Future of Municipal Revenue", (Presentation, Municipalities of Newfoundland and Larbrador , Gender, NL 30 April 2010).Ottawa, “Ontario's Property Tax System”, City of Ottawa (15 March 2011): http://www.ottawa.ca/residents/proptaxes/general_info/on_tax_system_en.html (accessed November 4, 2011). Slack Enid a, “The Property Tax… in Theory and Practice,” Institute on Municipal Finance and Governance Working Paper, no. 2 (2010): 1-16.Slack Enid b, “Assessment Limits for Ontario: Could We Live with the Consequences?” Association of Municipalities of Ontario, (June 2010): 1-48.Vander Ploeg Casey, “Troublesome Property Tax: Why Your Property Tax Is Falling Short and What to Do About It,” Canada West Foundation, (2008) : 1-61. Wannell Ted and Chawla Raj, “Property Tax,” Perspectives on Labor and Income 4, no. 7(2007): 7-14.