New Census data released by state for fiscal year 2005 shows which states saw the biggest increase in property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. collections during the real estate boom from 2000 through 2005. The table below presents the top 10 states in terms of change in property taxes per capita (at all levels of government within a state) from 2000 to 2005. For the full table, click here.
Wyoming and Kansas top the list, followed by Texas which has since overhauled its property taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. system. Other states are in the process of reform, some of which we have previously commented on here, here, here, here, here, here, and here.
Nationwide, property taxes increased by nearly 28 percent over the five-year period. Adjusted for inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. (CPI-U), that amounts to about a 12.7 percent increase in real property tax burdens, an average of about a 2.5 percent real increase each year.
| State |
2000 Per Capita |
2005 Per Capita Property Tax |
Percent Change | Rank |
| Wyoming | $1,177 | $1,751 | 48.7% | 1 |
| Kansas | $917 | $1,125 | 22.6% | 2 |
| Texas | $1,078 | $1,320 | 22.5% | 3 |
| Louisiana | $442 | $539 | 21.9% | 4 |
| Michigan | $1,084 | $1,279 | 18.0% | 5 |
| Nevada | $816 | $962 | 17.9% | 6 |
| Massachusetts | $1,365 | $1,607 | 17.7% | 7 |
| Indiana | $1,036 | $1,219 | 17.7% | 8 |
| New York | $1,506 | $1,768 | 17.4% | 9 |
| Missouri | $690 | $810 | 17.3% | 10 |