Property taxes are a hot topic in the U.S., often sparking fierce debates. Recently, New York City Mayor Zohran Mamdani stirred controversy by suggesting a significant increase in property taxes to address a budget gap of $5.4 billion. His proposal aimed to either tax wealthy residents more or increase taxes on homeowners, which many saw as a political maneuver to push state lawmakers to act.
Currently, property taxes make up a whopping 70% of local tax collections, funding essential services like schools and public safety, as noted by the Tax Foundation. However, rising home values are causing tax assessments to go up, leaving many homeowners concerned about their increasing bills. For instance, the median property tax bill in the U.S. surged by 30% from 2019 to 2024.
Interestingly, some states, like Florida and Georgia, are exploring ways to eliminate property taxes entirely. This trend reflects a growing pushback against rising costs.
“Surging home values have amplified calls to cut or even abolish the property tax,” wrote Thomas Brosy, a senior research associate at the Tax Policy Center. He pointed out that as property values climb, homeowners frequently feel the squeeze from larger tax bills.
New York County, home to Manhattan, is among the top counties for property taxes, with homeowners averaging over $10,000 annually. In contrast, Illinois holds the highest effective property tax rate, while Hawaii enjoys the lowest.
Mamdani’s plan faces an uphill battle, as Governor Kathy Hochul has already rejected wealth taxes and opposes higher property taxes. New York City Council Speaker Julie Menin labeled the proposal unrealistic.
Understanding property tax dynamics is crucial as they continue to shape the financial landscape for many Americans, especially amid rising home values and growing budget constraints.
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Property Taxes
