Property tax collections increased by 3 percent over the past year. Collections increased by 13 billion dollars to a total of 503 billion collected. The figures include both commercial and residential property taxes.
Property taxes might be rising thanks to improving home values. State and local governments might be re-appraising homes to raise their listed value. Whether it has happened enough in different towns and states to affect the national average is unclear.
Interestingly, property taxes have taken up a smaller percentage of total tax collections than in recession years. In 2010, property taxes held 44.9% of the total share whereas now they hold 38.9% of the total. According to the National Association of Home Builders, that proportion is very close to the pre-housing boom levels seen in 2001 to 2003.
This trend would suggest that non property taxes have grown significantly faster over this time than property-based taxes, meaning that Americans are taking in more income and are generally having better economic success than in years previous. As everyone’s financial situation improves, it would make sense for the housing market to see similar results as it tries to creep back to a normal, healthy market.
Hart Real Estate Solutions