According to U.S. Census Bureau data, the nation's local governments will collect an estimated $476 billion in property taxes in 2010--almost double total state income tax revenues of $250 billion and considerably more than total sales tax revenues of $286 billion. That means property tax revenues are 66% higher than sales tax revenues--$190 billion more a year.
A decade ago, property taxes were roughly equivalent to sales taxes. In 2000, property taxes totaled $247 billion and sales taxes came in at $223 billion-- a differential of roughly 10%. Sales taxes have increased by 28% since 2000-- roughly in line with the rise in consumer prices (as calculated by the Bureau of Labor Statistics).
Property taxes, meanwhile, have far outstripped inflation, soaring from $247 billion in 2000 to $476 billion in 2010--a gargantuan increase of $229 billion, or 92%.
State income taxes have risen nationally from $217 billion in 2000 to $250 billion in 2010, after peaking at $303 billion in 2008, just as the global financial meltdown began. That's a rise of $33 billion, or 15%--actually less than inflation, since income taxes have fallen substantially in the recession.
Add all this up and we can see that local governments have become far more dependent on property tax revenues than they were in 2000.
No wonder they're jacking up property tax rates.
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2 Comments in Response to House Values Fall 30%, But Property Taxes Keep Rising
Despite home values plummeting 30% since 2008 Local governments are jacking up all taxes and fees. The damage is greater, because the higher the property tax, fewer home buyers qualify for mortgages. Many homeowners will have to reduce their home’s selling price to offset the buyer’s higher property tax costs—so a buyer can qualify for a mortgage. Should property values go up, homeowners would be hit again with higher property tax when their home is reassessed, taking into account the higher tax rate per $1,000 of value (increased) by local governments. So homeowners will lose financially on several fronts.
Arizona has the singlemost complex property tax system in the nation.
However, there is a solution to that and to this article in Arizona. IT's called www.prop13arizona.com
Get ready for orders of magnitude property tax increases coming up due to the "Jobs Bill" that Republicans are running that contain massive new programmatic residential property tax increases in it.
They claim it doesn't. They lie. It does. ORDERS OF MAGNITUDE INCREASES.
If you are a renter do not think you do not pay property taxes. The rental market is heating up and property taxes will be passed through to you.