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1 Aaron Merchak & Kail Padgitt, Property Tax Revenue Increased As Property Values Fell 1 (2010)

handle is hein.taxfoundation/ffcedxz0001 and id is 1 raw text is: FOUNDATION
August 31, 2010
No. 243

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Property Tax Revenue Increased As
Property Values Fell
By Aaron Merchak and Kail Padgitt
The recession that began in December 2007 was precipitated by a financial crisis which in turn was
triggered by the popping of a real estate bubble, particularly in residential property. And indeed,
property values did decline dramatically. The Case-Shiller index, a popular measure of residential
home values, shows a drop of almost 16 percent in home values across the country between 2007 and
2008. As property values fell, one might expect property tax collections to have fallen
commensurately, but in most cases they did not.
Data on state and local taxes from the U.S. Census Bureau show that most states' property owners
paid more in FY 2008 (July 1, 2007, through June 30, 2008) than they had the year before (see Table
1). Nationwide, property tax collections increased by more than 4 percent. In only four states were
FY 2008's collections lower than in FY 2007: Michigan, South Carolina, Texas and Vermont. And in
three states - Florida, Indiana and New Mexico - property tax collections rose more than 10 percent.
Table 1
State and Local Per Capita Property Tax Collections
Fiscal Years 2007-2008
Per Capita    Per Capita
Property Tax  Property Tax                     Rank
Collections   Collections    Percentage   (1 is Largest
2007          2008         Change        Increase)
United States       $ 1,298       $ 1,352           4.2%
Alabama             $  454        $   495           9.1%            6
Alaska              $ 1,523       $ 1,559           2.4%           41
Arizona             $  991        $ 1,043           5.2%           23
Arkansas            $  477        $   512           7.4%            11
California          $ 1,347       $ 1,449           7.6%            10
Colorado            $ 1,181       $ 1,254           6.2%            13
Connecticut         $ 2,314       $ 2,381           2.9%           40
Delaware            $  662        $   695           4.9%           26
Florida             $ 1,476       $ 1,649          11.7%             1
Georgia             $ 1,009       $ 1,063           5.3%           22
Hawaii              $  891        $   977           9.7%            4
Idaho               $  752        $   780           3.7%           35
Aaron Merchak is Adjunct Scholar and Kail Padgitt Staff Economist at the Tax Foundation.

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