The wide regional disparity in property taxes are highlighted in a new report from the Lincoln Institute of Land Policy
The wide regional disparity in property taxes are highlighted in a new report from the Lincoln Institute of Land Policy.
It shows that owners of apartment buildings can be paying 5 times as much as a typical owner-occupier and those additional costs are passed on to renters.
The 50-State Property Tax Comparison Study reveals that cities with the highest property taxes are often those struggling to make ends meet as other tax income is low and state rules prevent them from reducing their reliance on property taxes.
For example, Detroit, which has the highest effective tax rate on a median valued home (3.82%), has by far the lowest median home value of the cities covered in the report.
New York has among the lowest property tax rates for owner-occupied homes while also having the highest tax rate on apartment buildings and the 2nd highest rate on commercial properties.
The report also considers the additional burden placed on some homeowners in states which have adopted property tax assessment limits. Assessment limits typically restrict growth in the assessed value of individual parcels and then reset the taxable value of properties when they are sold, based on two factors: how long a homeowner has owned her home and appreciation of the home's market value relative to the allowable growth of its assessed value.
The study gives Los Angeles as an example, where an average home has been owned for 13 years and the median price is $542,100. The way the tax is assessed means a 39% higher cost for an owner of a newly-purchased home compared to someone who has owned their home for 13 years; despite the value of their home being the same.
It shows that owners of apartment buildings can be paying 5 times as much as a typical owner-occupier and those additional costs are passed on to renters.
The 50-State Property Tax Comparison Study reveals that cities with the highest property taxes are often those struggling to make ends meet as other tax income is low and state rules prevent them from reducing their reliance on property taxes.
For example, Detroit, which has the highest effective tax rate on a median valued home (3.82%), has by far the lowest median home value of the cities covered in the report.
New York has among the lowest property tax rates for owner-occupied homes while also having the highest tax rate on apartment buildings and the 2nd highest rate on commercial properties.
The report also considers the additional burden placed on some homeowners in states which have adopted property tax assessment limits. Assessment limits typically restrict growth in the assessed value of individual parcels and then reset the taxable value of properties when they are sold, based on two factors: how long a homeowner has owned her home and appreciation of the home's market value relative to the allowable growth of its assessed value.
The study gives Los Angeles as an example, where an average home has been owned for 13 years and the median price is $542,100. The way the tax is assessed means a 39% higher cost for an owner of a newly-purchased home compared to someone who has owned their home for 13 years; despite the value of their home being the same.
