Property taxes are a major source of revenue for local governments, and 2020 was a record-breaking year for property tax revenue. According to the National Taxpayers Union, property tax revenue across the United States reached an all-time high of $531 billion in 2020. This is a significant increase from 2019, when property tax revenue was $491 billion.
The increase in property tax revenue can be attributed to a number of factors. First, the real estate market has been booming over the past few years, with home prices increasing significantly in many areas. This means that homeowners are paying more in property taxes, as the taxes are based on the assessed value of the property.
Second, local governments have been relying more heavily on property taxes to fund their operations. With state and federal funding becoming increasingly scarce, local governments have had to turn to property taxes to make up the difference. This has led to an increase in the amount of property taxes being collected.
Finally, many local governments have also been increasing their property tax rates in order to generate more revenue. This has also contributed to the record-breaking property tax revenue in 2020.
The increase in property tax revenue is good news for local governments, as it provides them with much-needed funds to pay for services such as schools, roads, and public safety. However, it is important to note that this increase in revenue comes at a cost to homeowners, who are now paying more in property taxes than ever before.
It remains to be seen whether or not the record-breaking property tax revenue of 2020 will continue into 2021. However, it is clear that property taxes are an important source of revenue for local governments and will continue to be for the foreseeable future.