With home prices up more than 50%, some states try to contain property taxes
Rising home values have led to higher real estate taxes around the U.S. Now many states are looking to provide relief to frustrated residents
For retirees Tom and Beverly McAdam, the good news is the value of their two-bedroom home in suburban Denver has risen 45% since they purchased it more than six years ago.
That's also the bad news, costing them thousands more in real estate taxes and leaving less for discretionary spending.
“To pay the higher property taxes, it just means we’ve got to take more money out of our investments when it comes time to hit those big bills,” Beverly McAdam said.
She backs a Colorado ballot proposal that could cap the growth of property tax revenue. It's one of several measures in states this year to limit, cut or offset escalating property taxes in response to complaints.
Over the past five years, single-family home prices have risen about 54% nationally, according to S&P Dow Jones Indices.
That means higher tax bills for homeowners when governments don’t offset higher real estate values by reducing tax rates. And with offices seeing higher vacancies as people still work from home after the coronavirus pandemic, some commercial property values are declining, putting even more pressure on residential properties to deliver revenues.
“With assessed values skyrocketing over the past few years,” said Jared Walczak, vice president of state projects at the nonprofit Tax Foundation, “homeowners are clamoring for relief, and state policymakers are increasingly exploring ways to provide it.”
Colorado, like Alabama and Wyoming, also has a new law that will limit the growth in tax-assessed values for homeowners. Property tax relief will be part of a special legislative session beginning June 18 in
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