The burden of property taxes occurs several ways. The first is their cost. Others are relative–what someone pays in relationship to theoretical value of their homes. Another is the percent a homeowner pays of the assessed value of their homes in taxes. These valuations often are several years out of date. Many assessments almost certainly are too high in the current housing environment, meaning many people are paying way too much in property taxes
A critical factor to determine how onerous a property tax is involves the amount a home’s value has fallen since the real estate market collapsed
. Imagine paying 4 percent or 5 percent on your income on a property that has lost a quarter or more of its value. The property tax is a burden, but so is the cost of a mortgage which may well be underwater. The house cannot be sold without the owner taking a loss, perhaps a big one. 24/7 Wall St.
looked at data from The Tax Foundation, the Bureau of Labor Statistics, and the Bureau of Economic Analysis. Their goal was to find a formula to decide the affordability of property taxes. They could not find one. The only reasonable way to see if the tax is too high is to combine the percent of income that the tax is in a state where property values have fallen, unemployment is well above the national average,and median income per capita is low. The formula hardly yields a perfect result, but it does indicate how easily most people can pay property taxes by state.
Read on for a look at where property taxes are worst. The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.