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https://steamcommunity.com/profiles/76561197992352044/screenshot/2019356099339993284/
I ask because there was a green/red color around building on the ground before the last Beta patch. I think it's beautification for the green and desirability for the red.
No, it's not like that. The circles represents the housing desirability influence of the building. Green for good, red for bad. When bringing up the Desirability heat map, the greener areas are where people would want to build homes.
Tax offices work as much of an area as possible; ignore the desirability circle. It's best to have multiple tax offices around your land. I usually build it so three tax collectors are working out of the same tax office.