Property taxes are big topic of discussion for many states, including the highest property tax state of New Jersey. Governor Chris Christie has made controversial decisions in order to alleviate the strain for its residents, while other states have made radical changes like imposing cigarette taxes in order to take away some of the pressure that homeowners feel.
Rates by State
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California is the lowest state of all in the nation as far as property taxes are concerned, but that money is made up in different ways with high taxes on sales, gas, and non-food items. The property taxes in states make up an average of 20% of all state revenue, and for those states that have higher property tax rates, they usually have lower or no sales tax, like in Delaware, Oregon, and New Jersey.
It is interesting to note that the states with the higher property tax rates seem to be floating with the recession, whereas states with lower rates are either in a complete tailspin, or have found themselves to be in a precarious situation. While taxes are unique in each state, they are highly noticeable for properties that are considered high value or a bulk property. Bulk simply means a dollar amount over $500,000.00, with the exception of New Jersey, whose rate for taxation is approximately 16%. The lowest is California at just over 4%.
Property taxes can make a difference when purchasing a home. If the loan is impounded, those taxes are added to the monthly payment, along with the homeowners insurance. This has made purchasing a home in some cases a non-option.