Vermont Business Magazine Vermont has the fifth highest effective property tax rate in the nation, according to a national survey. ATTOM Data Solutions, curator of the nation's largest fused property database, has released a 2016 property tax analysis for more than 84 million USsingle family homes, which shows that property taxes levied on single family homes in 2016 totaled$277.7 billion, an average of$3,296per home and an effective tax rate of 1.15 percent. Vermont (2.02 percent) and New Hampshire (2.03 percent) had rates that were nearly double.
The report analyzed property tax data collected from county tax assessor offices nationwide at the state, metro and county level along with estimated market values of single family homes calculated using an automated valuation model (AVM). The effective tax rate was the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area.
NewJersey, Illinois,Texaspost highest property tax rates
States with the highest effective property tax rates wereNew Jersey(2.31 percent),Illinois(2.13 percent);Texas(2.06 percent);New Hampshire(2.03 percent); andVermont(2.02 percent).
Other states in the top 10 for highest effective property tax rates wereConnecticut(2.00 percent),Pennsylvania(1.89 percent),New York(1.88 percent),Ohio(1.68 percent), andRhode Island(1.64 percent).
"Ohioin recent history has among the highest average property taxes in the nation, even though housing is among the most affordable," saidMatthew Watercutter, senior regional vice president and broker of record forHER Realtors, covering theDayton,ColumbusandCincinnatimarkets inOhio. "Typically the more populated, urban and suburban counties have a higher effective tax rate than their more rural counterparts. This issue affects the affordability of housing, as property taxes do affect the ratios for potential buyers. By continually raising property taxes to support schools, as well as other infrastructure in lieu of other funding sources such as sales tax — which generates revenues from property owners as well as non-property owners — property taxes limit a buyer's ability to purchase as well as the property's ability to appreciate in value."
Among 217 metropolitan statistical areas with a population of at least 200,000, those with the highest effective property tax rates wereBinghamton, New York(3.10 percent);Rochester, New York(2.99 percent);Rockford, Illinois(2.96 percent);Atlantic City, New Jersey(2.77 percent); andSyracuse, New York(2.67 percent).
Hawaii,Alabama,Coloradopost lowest property tax rates
States with the lowest effective property tax rates wereHawaii(0.32 percent);Alabama(0.48 percent);Colorado(0.52 percent);Tennessee(0.54 percent); andDelaware(0.56 percent).
Other states in the top 10 for lowest effective property tax rates wereWest Virginia(0.57 percent);South Carolina(0.63 percent);Nevada(0.64 percent);Utah(0.65 percent); andArkansas(0.67 percent).
Among the 217 metro areas analyzed for the report, those with the lowest effective property tax rates wereHonolulu(0.32 percent);Montgomery, Alabama(0.35 percent);Tuscaloosa, Alabama(0.36 percent);Florence, South Carolina(0.44 percent); andColorado Springs, Colorado(0.44 percent).
"I'm sure manySeattle-area homeowners will be surprised to hear that property taxes in our region are relatively low compared to the rest of the US, especially when you consider how aggressively our home prices have risen in recent years. But rising home prices are more a function of our thriving economy rather than relatively low property tax levels," saidMatthew Gardner, chief economist atWindermere Real Estate, covering theSeattlemarket, where the metro property tax rate ranked No. 133 out of the 217 metros analyzed and whereKing Countyranked 410 out of 586 counties analyzed in the report. "Within King County, there are great variations in what homeowners pay in property taxes due in part to the popularity and demand for housing in certain areas, but this doesn't appear to be a major factor for buyers when deciding where to live."
9 counties with average annual property taxes of more than$10,000
Among 586 counties with a population of at least 100,000 and at least 10,000 single family homes, nine posted average annual property taxes of more than$10,000:Westchester,Rockland, andNassaucounties inNew York;Essex,Bergen,UnionandMorriscounties inNew Jersey;Marin County, California; andFairfield County, Connecticut.
There were a total of 32 counties with average annual property taxes of$7,000or more, including counties inIllinois,Texas,VirginiaandMassachusetts.
Owner-occupied properties register higher effective tax rate than investment properties
The average annual property tax for owner-occupied single family homes nationwide was$3,658, an effective tax rate of 1.21 percent. That was higher than the average annual property tax of$2,437and effective tax rate of 1.03 percent on non-owner occupied (investment) homes.
The effective tax rate for investment homes was lower than the effective tax rate for owner-occupied homes in 34 states, includingCalifornia,Texas,Ohio,IllinoisandNew York.
States where the effective tax rate for investment homes was higher than the effective tax rate for owner-occupied homes includedFlorida,Pennsylvania,Michigan,IndianaandArizona.
Investment property homeowners owed$51.4 billionin property taxes in 2016, accounting for 19 percent of the total property taxes owed nationwide, while the number of investment properties accounted for 26 percent of all single family homes.
AboutATTOM Data Solutions
ATTOM Data Solutionsis the curator of the ATTOM Data Warehouse, a multi-sourced national property database that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. residential and commercial properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.
ATTOM Data Solutions also powers consumer websites designed to promote real estate transparency:RealtyTrac.comis a property search and research portal for foreclosures and other off-market properties;Homefacts.comis a neighborhood research portal providing hyperlocal risks and amenities information;HomeDisclosure.comproduces detailed property pre-diligence reports.
ATTOM Data and its associated brands are cited by thousands of media outlets each month, including frequent mentions on CBS Evening News, The Today Show, CNBC, CNN, FOX News, PBS NewsHour and inTheNew York Times,Wall Street Journal,Washington Post, andUSATODAY.
SOURCE: IRVINE, Calif.,April 6, 2017/PRNewswire/ --ATTOM Data Solutionswww.attomdata.com