Which US cities will have property tax increases in 2022?
Every week, Mansion Global poses a tax question to real estate tax lawyers. Here is this week’s question.
Q. Where in the United States will property tax rates increase next year?
A. As municipalities across the United States struggle to recover from the Covid-19 pandemic, many have increased property tax rates to help fund infrastructure, administration, and other funding shortfalls.
Chicago’s 2022 budget, for example, includes a $76.5 million property tax increase, according to Mayor Lori Lightfoot’s budget, which was approved by the Chicago City Council in late October. That will mean a $38 increase for homeowners whose property is valued at an average price of $250,000, according to city officials.
The 2022 increase is less than the $94 million addition to property taxes projected in the 2021 budget. The city government was able to use federal relief funds to control the rate hike, officials said. .
Pittsburgh homeowners will see a 3% increase in property taxes after the Pittsburgh Public Schools Board approved the increase in December. The rate hike is expected to cost taxpayers about $30 on every $100,000 of a home’s assessed value, generating about $5.3 million in revenue for the school system in 2022, according to Pittsburgh Public Schools. .
In Chapel Hill, North Carolina, a 2-cent increase in the property tax rate was included in next year’s budget, passed over the summer. This means the city’s tax rate is now 51.4 cents per $100 of estimated property value. A 3-cent raise was initially proposed, but the city council did not approve it, according to reports. A homeowner with a property accessible at $400,000 would pay just over $2,000.
Due to rising property assessments, some municipalities have lowered tax rates to meet the state revenue cap. Many areas in Texas and Florida have reduced the tax rate to stay below the cap.
Meanwhile, many municipalities are barely preparing for the budget debates, which will take place before the fiscal year-end at the end of June. Email your questions to [email protected] Check for answers weekly at mansionglobal.com.