States collecting the most property tax revenue | Lifestyles

Property tax stability could help continue to protect state and local budgets if the United States heads into a recession in the near future. Property tax collections represent 16.6% of general state and local tax revenue, making it the largest form of “own source“revenues generated by states and localities, ahead of personal income (12.9%) and general sales taxes (12.5%). And of all revenue sources, property tax trails only intergovernmental funds (22%), which includes funds transferred from one government to another (most often federal to state or local) by the through grants, loans and other agreements.

However, the overall mix of state and local revenue sources looks different across the United States. Each state and local government offers a unique collection of income sources that weight income, sales, property, and other taxes differently. For example, nine states have no state income tax, while five have no state sales tax. Others have caps on property tax rates or restrictions on how property assessments are done that limit the amount of property tax revenue. This means that individuals’ specific tax burdens will be different depending on the state and local tax laws where they live.

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