What You Should Know About Real Estate Property Taxes (2)

If you're looking to move into an area, research the area's rise in
property taxes over the past several years. Many states have seen
steady property tax hikes in recent years, and residents are very
concerned. States that have low or no sales taxes on items such as
clothing may be more highly dependent on property taxes. New Jersey
and Connecticut are two states that fall into that category.

Citizens from a number of states have already begun voicing property
tax complaints. State government officials are looking for ways to fix
the growing problem, but are not having great success. States have
tried alternatives ranging from finding other sources of tax revenue
to new forms of property taxation. In Michigan, for example, all
property tax revenue goes to the state, where it is then provided to
various areas proportionately based on their needs. This system has
wealthier neighborhoods helping fund the needs of areas in
redevelopment. In most states, however, new plans to curtail the
rapidly rising property taxes are still on the drawing board.

For now, the best you can do is to have your assessment reviewed if
you're a homeowner and feel that you're paying very high property
taxes. If you're shopping for a house, be aware of the property tax
and the recent increases in the areas where you're looking.