Back in 2008 as property values were plummeting one thing was going up. Your property taxes. Local governments were on a spending binge on the tax money that had been pouring in as property values continued to rise.
Property taxes were the Golden Goose for local politicians and they could not believe that the goose was dying.
According to census data recently released, in fiscal year 2008 (July 2007–June 2008) property taxes rose 4.2 percent as home values fell 16 percent.
For those of us in the real estate business, this was a jarring disconnect. So many families were watching their equity in their home
s disappear or go upside down, yet the politicians were looking to fill their bloated pocketbooks even more without a clue on how it was affecting the population. Florida, Indiana, and New Mexico had the nerve increased their property taxes over 10 percent in the year.
Here is a list from the census bureau of the top 10 states that raised their taxes the most in fiscal year 2008.
Top 10 States With the Largest Property Tax Increases in 2008
Rank State Increase Per Capita Tax 1 Florida 11.7% $1,649 2 Indiana 11.6% $1,089 3 New Mexico 10.2% $568 4 Hawaii 9.7% $977 5 Nevada 9.2% $1,241 6 Alabama 9.1% $495 7 West Virginia 8.7% $683 8 Oklahoma 8.4% $582 9 Minnesota 7.6% $1,273 10 California 7.6% $1,449
via the Tax Foundation
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My property tax has gone down each year for the last four years so maybe I am lucky. I can't blame the county, though. Everyone is broke and revenue is needed.
We have a governor in Minnesota who has refused to increase any state taxes during his term which has resulted in county governments increasing property taxes to make up for the shortage. My property taxes have almost doubled during the past five years in Minneapolis. Of course we all know that during that same period of time housing values in Minneapolis have dropped substantially.
That is why it is better to lease than to buy.