Nationwide, the rise of personal property tax bills has nearly doubled as compared to the level of personal income in the years 2000-2004.
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.
FULL STORY: Gain in Income Is Offset by Rise in Property Tax

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