U.S Property Taxes: Highs and Lows!

U.S. Property Taxes - Highs and Lows!

U.S. Property Taxes – Highs and Lows!

According to a new residential property tax study from the Tax Policy Center, some of the lowest property taxes in America are found in certain counties in Alabama and Louisiana. Between 2007 and 2011, when data for the survey was collected, 60% of the counties in the country reported average property taxes of between $500 and $1500 a year.  During that same period of time, the study found 24 counties with annual property tax bills below $250 per month, mostly in Alabama and Louisiana. The results of the study also revealed that parts of Michigan, Nebraska, Ohio and North Dakota had property taxes that were low in terms of the dollar amount paid but relatively high when measured as a percentage of the home price. Parts of these four states recorded property taxes that were significantly above 1% of the home price whereas the national average for property taxes is generally less than 1% of home value. The results of the same Tax Policy Center study showed that the highest property taxes were found in certain counties in New York and New Jersey. The three counties with the highest property taxes were Westchester and Nassau Counties in New York with average monthly property taxes of $800 a month and $756 a month, respectively and Bergen County, New Jersey with average property taxes of $741 a month. Five other counties in New Jersey also had average annual property tax liabilities exceeding $8000. On the positive side, the Tax Policy Center noted that counties with higher property taxes usually have fewer other local tax responsibilities and also tend to spend more on things like education and public services that benefit the county’s residents. No matter where you live, property taxes are one of the hardest taxes to analyze. One reason for this is that there is no set formula used by every county and state to calculate property tax. It is often difficult to tell how a home’s assessed value, on which property taxes are based, is derived rim the home’s market value. In addition, the tax rate is likely to vary from year to year based on the expenditure needs of the local government.  It is no surprise that 42% of Americans surveyed by Gallup in 2005 said that the property tax was the least fair tax! If your business is seeking business tax or business accounting solutions, our experienced professionals can provide you with the expertise you are looking for. To learn more about our full range of business tax and business accounting services, visit us today at www.businesstaxpreparation.com. Contact us by email at info@businesstaxpreparation.com or by phone at (866) 676-9417 to receive a free, no obligation consultation.