Property Tax Increases Outstrip Personal Income Growth

Nationwide, the rise of personal property tax bills has nearly doubled as compared to the level of personal income in the years 2000-2004.

1 minute read

August 11, 2006, 3:00 AM PDT

By Matt Baumann


Since the downturn of the stock market in 2000, and state budgets began to shrink, local school districts are turning to property owners to pay their bills. The most startling jump in tax bills has occurred in the states of Connecticut, New York, and New Jersey where tax bills have sometimes increased 50% in just 5 years.

This large percentage increase is in sharp contrast to the mid-90's where tax bills increased yearly at modest 5% average. Meanwhile, personal income was increasing faster than property tax rate hikes. Since 2000, however, personal income has stopped or slowed, or in some counties, declined, causing many homeowners to ponder selling their properties because of unaffordability issues.

The reason for this sharp increase? State budgets have shrunken causing a major decrease in funding to school districts. The school districts, in turn, are looking to property owners to bail them out. This action has led some states to propose property tax legislation to address this issue.

Sunday, August 6, 2006 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

People sitting and walking in plaza in front of historic Benton County Courthouse in Bentonville, Arkansas.

Placekeeping: Setting a New Precedent for City Planners

How a preservation-based approach to redevelopment and urban design can prevent displacement and honor legacy communities.

March 28, 2025 - Emily McCoy

Orange and white vintage-look streetcar on Market Street in San Francisco, CA.

San Francisco’s Muni Ridership Grew in 2024

The system saw its highest ridership since before the Covid-19 pandemic, but faces a severe budget shortage in the coming year.

April 4 - San Francisco Chronicle

Green and silver Max BRT bus at station in Fort Collins, Colorado.

Colorado Lawmakers Move to Protect BRT Funding

In the face of potential federal funding cuts, CDOT leaders reasserted their commitment to planned bus rapid transit projects.

April 4 - Colorado Public Radio

Low view of separated bike lanes in middle of Pennsylvania Avenue with U.S. Capitol dome visible at end of street at night.

Safe Streets Funding in Jeopardy

The Trump administration is specifically targeting bike infrastructure and other road safety projects in its funding cuts.

April 4 - Grist