A property tax can be thought of as a capital structure, which divides a stream of rents into components accruing to the homeowner and to the government. Near-term rents mainly accrue to homeowners, and far-term rents mainly accrue to governments. This characterization implies that the value of property tax revenues is very sensitive to interest rates, that governments funded by tax revenues have future-biased incentives to invest in public goods, and that taxed homeowners have present-biased incentives for investment.