Property Taxes: A Steady Income for Local and State Revenue
Property tax shares have been on the rise for the past five and a half years. NAHB reports that the Census Bur
eau’s quarterly tax data concludes that $573 billion in property taxes were paid in the four quarters of 2017. While individual income tax receipts grew 5.4%, property tax revenues were the biggest increase at 6% as major income sources of state and local tax revenue.
State an
d local share of total receipts include property taxes at 40.4%, individual income taxes at 28.5%, sales taxes at 27.3% and corporate taxes at 3.8%. Property taxes has remained steady above 40% for four consecutive quarters since 2012-2013. Non-property tax receipts that include individual income, corporate income and sales tax revenues change often and have been sensitive to the market while property tax collections have been stable.
Property taxes stability stems from the long-term stable property values and the lagging time in assessments and annual adjustments. According to NAHB property taxes have increased the majority of the past ten quarters. The ratio of property tax revenue to total tax revenue is stable at more than 3% points above its pre-housing boom average of 37%.
