Property taxes continue to rise across the country, despite steep declines in home values.
Property tax collections across the United States rose 3.1 percent this year, according to the U.S. Bureau of Economic Analysis (BEA). That means state and local governments will collect more than $400 billion in property taxes this year—a record amount.
Most states have caps that prevent taxes from rising rapidly in boom times. The same laws keep taxes from plummeting when home values decline.
“Property taxes aren’t always popular, but they are a very stable tax, even in tough times,” says Thomas Gentzel, executive director of the Pennsylvania School Board Association.
Source: USA Today, Dennis Cauchon (12/04/08)