I don’t know who is behind this, but it’s all over social media and it’s nonsense.
Property Tax Delinquency is Common, Foreclosure is Less So: Every year, billions of dollars in property taxes go unpaid. In 2019, over 2 million tax certificates were sold to recover revenue. However, data from the National Tax Lien Association suggests that less than 1% of delinquent tax bills ultimately result in a tax foreclosure. Some research indicates that less than 0.05% of delinquent taxpayers actually lose their home.
Based on information about homestead programs and property tax credits:
- A study indicated that 38 states and the District of Columbia make homestead exemptions or credits broadly available to homeowners.
- Another source noted that almost all states, with the exception of about three, have at least one program such as a homestead exemption or property tax credit.
These programs vary widely, including:
- Homestead Exemptions (which reduce a home’s taxable value)
- Property Tax Credits (which directly reduce the tax bill)
- “Circuit Breaker” Programs (which provide relief when property taxes exceed a certain percentage of income)
- Programs often targeted at seniors, disabled individuals, or veterans.
Therefore, the number is around 47 to 49 states that have some form of program to help people with property taxes, as most states offer homestead exemptions and/or property tax credits.
So, what’s the fair alternative to property taxes that does not adversely affect the housing market in a town and can be regular adjusted and relied upon – it’s not local sales or income taxes.
QUINNSCOMMENTARY 
My problem with the property taxes but is that it is unfairly administered. If I buy a house today, my tax bill will be higher than what the seller was paying. The excuse given is the tax is based on the selling price. I look around the neighborhood and the taxes are varied based on how long the owner has had the property. The assessments never keep up. Whereas if we are talking sales tax, then everyone who buys the same item will pay equal tax on the item. james-
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That’s not universally true. Only some locations do that. The last property I bought was the same. And taxes are changed once a year. Also, towns can’t simply raise taxes upon reassessment of home value, the tax rate is adjusted so the actual taxes are the same. Then, based on budget needs the tax rate may be adjusted in the future.
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Interesting –to stem the tide I guess you need to sweeten the pot–be curious to see if it is implemented–thanks for info.
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Al Lindquist:
can you give some insight into what I heard about a new law in NJ that reduces property taxes? seniors only? income based? how would the differences in revenue be made up? why is NJ doing this? are too many folks heading to red states so this an attempt to put a finger in the dike?
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There is a new program Stay NJ that is supposed to rebate 50% up to $6,500 in property taxes. Income limit $500,000, but it is subject to the state budget next year so who knows if it will actually be paid. You have to apply this month.
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