Tuesday, July 6, 2010

Property tax collections drop nationwide

Census data show that total property taxes collected across the country has declined for the first time since 2003.  Even with the housing slump it takes valuations time to catch up with falling market values...  The Tax Policy Blog has this take:

Tax revenues for state and local governments grew in the first quarter, according to newly released Census data for the first quarter of 2010 (historical table included). That's two quarters in a row of growth, possibly relieving a bit of the pressure that state and local governments have felt to raise taxes or lower spending. Among tax sources, individual income tax and general sales tax revenues were the gainers; corporate income tax revenue declined significantly, and property tax revenues declined slightly.

Even though the housing bubble popped in early 2008, starting a wave of foreclosures and rapid declines in housing values, local governments have mostly succeeded at keeping property tax revenue coming in by raising the rates. But the new Census data reveals that although the drop was slight, the 12-month total from March 2009 to March 2010 recorded the first decline in total property taxes since 2003.

1 comment:

  1. This is correct. Counties are being devastated as they try to find new ways to collect on unpaid property taxes. One state, Texas in particular passed legislation last year to allow Property Tax Loans have been a help to many Texans. This has helped many homeowners who are unable to refi, pay their property taxes quickly without the high fees and interest most counties charge.I expect to see property taxes remain the issue of several pieces of legislation as lawmaker try to find ways to ease taxpayer burden.