December 1, 2006
For immediate release
Media contact: Brian Phillips (202) 464-5102
Property taxes have grown faster than any other major source of tax revenue over the last five years according to a new study by the Tax Foundation. Collections increased 28% between 2000 and 2004.
The study takes a comprehensive look at how property taxes are levied, where the money goes, and which states have the highest rates. Taxes were found to be highest in the Northeast, Texas, Illinois and Wisconsin. Counties in New York and New Jersey dominate the list of high-tax counties.
Many local and state elections this fall focused on property tax reform and the increasing burden property taxes place on taxpayers. “It’s not like other taxes,” said author and staff economist Gerald Prante, “because it often involves writing a huge check to the government. That will get taxpayers worked up and force lawmakers to address it.”
Almost three-quarters of revenue at the local level is generated by property taxes. The study shows that the money primarily goes to fund education. “If there is a significant decline in the housing market,” Prante warned, “governments will likely take steps to recover the losses. That could lead to further increases in property tax rates.”
Click here to read the full study.
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