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In fiscal year 2010, state and local governments collected $441.6 billion in property taxes, comprising 23.5 percent of state and local own-source revenue. Because the tax is so unpopular with homeowners, many people have pushed to shift more of the tax burden on commercial and industrial properties, says Joseph Henchman of the Tax Foundation.
Commercial properties face higher tax rates than residential properties in 39 states
Overall, commercial property paid 1.724 times what a homestead paid in 2010.
Some states show that they receive more tax revenue from residential properties. However, that data may be misleading since there may be more residential properties than commercial and industrial properties, like in New Jersey.
What kind of dumb ass study wouldn't adjust for the number of res vs. com vs. industrial properties ?
In fiscal year 2010, state and local governments collected $441.6 billion in property taxes, comprising 23.5 percent of state and local own-source revenue. Because the tax is so unpopular with homeowners, many people have pushed to shift more of the tax burden on commercial and industrial properties, says Joseph Henchman of the Tax Foundation.
Commercial properties face higher tax rates than residential properties in 39 states
Overall, commercial property paid 1.724 times what a homestead paid in 2010.
What kind of dumb ass study wouldn't adjust for the number of res vs. com vs. industrial properties ?
Studies that are poorly designed or which have a political axe to grind, usually.
I'd like to see a tax comparison between owner-occupied and rental property, which we don't have here. Rental property can be residential (single-family homes and 2-4 unit properties) or commercial (apartment buildings greater than 4 units are usually classified as commercial)
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Higher taxes on commercial/industrial makes sense to me. They are properties that are generating a profit for the owners, while residential is providing places for people to live.
When you consider the "services" provided by those taxes, commercial/industrial properties are costing the state/local government more than residential.
Higher taxes on commercial/industrial makes sense to me. They are properties that are generating a profit for the owners, while residential is providing places for people to live.
When you consider the "services" provided by those taxes, commercial/industrial properties are costing the state/local government more than residential.
But apartment buildings provide places for people to live and usually (when greater than 4 units) are taxed at higher commercial rates.
Also, rental property (which can be residential (single family houses) or commercial (apartments)) is taxed at higher rates in many states.
The National Multi Housing Council (nmhc.org), a nationwide organization of apartment owners and managers, notes that single family homes generate more than 2x as many school kids per 100 units than apartments.
And since K12 education is usually the largest local tax consumer, it's incorrect to say that commercial/industrial properties cost governments more than residential.
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