Americans battered by the biggest slump in home prices on record are facing higher property taxes as local governments struggle to plug budget deficits. Municipal finance officers budgeted for a 3.6 percent drop in revenue from residential taxes this fiscal year, a survey by the U.S. League of Cities in September shows. With home prices down 12.4 percent in the fourth quarter from a year earlier, the most ever for an index compiled by the National Association of Realtors, cities and counties are compensating with higher tax rates or appraisals, even where laws cap property-tax growth.
By Jerry Hart, March 12, 2009, Bloomberg
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