If the property tax rates are increased, this change in fixed costs will result in a decrease in the break-even point.

Property Tax Rates

The percentage at which local governments tax the value of real estate properties.

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales volume, such as rent or insurance.

Break-even Point

The point at which a company's revenue equals its expenses, resulting in no net loss or gain.