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Property taxes in the U.S. are starting to fall despite the fact that home values have fallen over the last few years.
Ball State economist Dr. Michael Hicks says it typically takes 18 to 24 months in Indiana for a significant drop in home prices to work its way through the property tax system. Dr. Hicks says the drop in property taxes really magnifies how deep the recession was on assets.
He also says the drop in property taxes shouldn’t have a large effect on schools.
“In Indiana, the operating cost of schools with the exception of transportation and construction are all paid for by state dollars so schools aren’t feeling the pinch from property taxes except for getting kids to and from schools,” he says.
Hicks says the drop means less money for local government in places that are primarily financed by property taxes.