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The property tax, and The tax cut.

 

Kambiz Merabi explains the property tax in lieu of the tax cut.

The new tax bill that a few weeks ago puts a cap on the amount  one can deduct for state, local and property taxes at $10,000. Previously  the deduction used to be unlimited.

 

 

 

Mr. Merabi said The various taxes and charges on property tax bill are very complex, varies for county to county, and often not well understood. This report provides an overview of this major source of local government revenue and most states take over 1%  of Property Tax .

This report is only for 84 million single-family homeowners in the US’s property tax excludes CRE and will highlights key policy issues related to property taxes and charges.

 

 

 

All Revenue From Property Taxes Is Allocated to Local Governments. Property tax revenue remains within the county in which it is collected and is used exclusively by local governments. State laws control the allocation of property tax revenue from the 1 percent rate to more than 4,000 local governments, with K–14 districts and counties receiving the largest amounts. The distribution of property tax revenue, however, varies significantly by locality.

The Property Tax Has a Significant Effect on the State Budget. Although the property tax is a local revenue source, it affects the state budget due to the state’s education finance system—additional property tax revenue from the 1 percent rate for K–14 districts generally decreases the state’s spending obligation for education. Over the years, the state has changed the laws regarding property tax allocation many times in order to reduce its costs for education programs or address other policy interests.

 

American homeowners paid property taxes totaling nearly $278 billion in 2016. That means that each of the country’s 84 million single-family homeowners paid an average of $3,296 in property taxes, which amounts to an average 1.15% effective of the tax rate . Our research finds that there were nine counties in the us with a population of at least 100,000 that had average annual property taxes of more than $10,000:

New York, California,   New Jersey;  Connecticut, and the highest rate state are :

    • New Jersey
    • Illinois
    • New Hampshire
    • Connecticut
    • Wisconsin
    • Texas
    • New York
    • California
    • Vermont
      • Rhode Island

 

 

 

 

How Are Property Tax Dollars Spent?

  • Local School District 37-40%
  • State 1-2%
  • Cities’ municipals 6%
  • Local Police Department, 911, Local Fire Department, ambulance  15-17%
  • Maintaining Streets, Water, Sewer, Waste, Parks 13-15%
  • Court system judges, public defender 10 %
  • Family Services 7%
  • Social Services 7%

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