Property tax is a tax levied on land and buildings (real estate) and on personal property. In the U.S. it is typically the main source of revenue for local government. High property taxes have the effect of depressing property values and ironically lowering tax revenues. There are two effects of this tax since the tax is levied both on the land value and the building value. The effect of the tax on land has the effect of lowering land cost, since it discourages land speculation, thus benefiting buyers and thereby making housing more affordable. The effect of the tax on the buildings has the effect of increasing costs and discouraging construction and job creation.
In many states in the United States, public education is funded primarily by property taxes.
States with lowest property taxes (per capita, annually)
Rates vary across the states, between about 0.2% and 4% of the home value.
States with highest property taxes (per capita, annually)
Source: The Tax Foundation, based on Commerce Department and Census statistics.
- 16 word quotation: Fair Use Source: Rawles, James Wesley. Rawles on Retreats and Relocation. 1st. Clearwater, Idaho: The Clearwater Press, 2007. p. 42. Print. see James Wesley Rawles on Fair Use
- http://www.survivalblog.com/retreatareas.html Recommended Retreat Areas accessed March 30, 2014
- http://www.taxfoundation.org/publications/show/1913.html, The Tax Foundation, Property Taxes on Owner-Occupied Housing by State, 2004 – 2009, Published 2009, Accessed March 30, 2014