The Real Estate Bloggers

Property Values Fall As Property Taxes Rise

Posted: 01 Sep 2010 06:31 AM PDT

Back in 2008 as property values were plummeting one thing was going up. Your property taxes. Local governments were on a spending binge on the tax money that had been pouring in as property values continued to rise.

Property taxes were the Golden Goose for local politicians and they could not believe that the goose was dying.

According to census data recently released, in fiscal year 2008 (July 2007–June 2008) property taxes rose 4.2 percent as home values fell 16 percent.

For those of us in the real estate business, this was a jarring disconnect. So many families were watching their equity in their home

s disappear or go upside down, yet the politicians were looking to fill their bloated pocketbooks even more without a clue on how it was affecting the population. Florida, Indiana, and New Mexico had the nerve increased their property taxes over 10 percent in the year.

Here is a list from the census bureau of the top 10 states that raised their taxes the most in fiscal year 2008.

Top 10 States With the Largest Property Tax Increases in 2008

Rank    State           Increase        Per Capita Tax  1       Florida         11.7%           $1,649 2       Indiana         11.6%           $1,089 3       New Mexico      10.2%           $568 4       Hawaii          9.7%            $977 5       Nevada          9.2%            $1,241 6       Alabama         9.1%            $495 7       West Virginia   8.7%            $683 8       Oklahoma        8.4%            $582 9       Minnesota       7.6%            $1,273 10      California      7.6%            $1,449

via the Tax Foundation

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Property Values Fall As Property Taxes Rise