October 3, 2009
"Home taxes in Tennessee half the national average"
By Dave Flessner
Property taxes in Tennessee are only about half the U.S. average and Georgia's rates are only about two-thirds as much, according to new government estimates. ...
The lower property tax bills in the South reflect both lower tax rates and lower average home values, according to Gerald Prante, senior economist for the Tax Foundation in Washington, D.C., which analyzes the Census Bureau data.
The Tax Foundation calculates that average homeowners in Hamilton County spend 0.8 percent of their income on residential property taxes, or 20 percent less than the U.S. average.
Homeowners might appreciate the lower bills, but Mr. Prante noted that low-tax states also tend to spend less on public education and often have lower average student achievement.
"Property tax rates can help encourage or discourage people from moving into an area, but the quality of schools in an area is also critical and sometimes better schools are in areas with higher property taxes," he said.
"The No. 1 determinant in whether people move to an area is whether or not they benefit for the dollars they pay in taxes," he said.
Higher taxes, like more expensive goods, aren't always a deterrent, Mr. Prante said.
"If I can buy a Lamborghini for $30,000, that's still a great bargain even though it's more than the cost of a typical car," he said.