Fact Check: Property tax is a common source of revenue for local governments.

Fact Check: "Property tax is a common source of revenue for local governments."

What We Know

Property taxes are indeed a significant source of revenue for local governments across the United States. According to a report by the Tax Policy Center, state and local governments collected approximately $630 billion from property taxes in 2021, which accounted for about 15% of total general revenue. Furthermore, a more recent analysis indicates that property taxes are the primary revenue source for over 90% of local governments, as highlighted by the Center on Budget and Policy Priorities.

In Washington, D.C., property taxes generated around $2.9 billion in revenue for the fiscal year 2021, as reported in the D.C. Office of the Chief Financial Officer. This demonstrates that property taxes play a crucial role in funding local services and infrastructure.

Analysis

The claim that property tax is a common source of revenue for local governments is supported by multiple reliable sources. The Tax Policy Center provides a comprehensive overview of the role of property taxes in local government revenue, confirming that they constitute a significant portion of the overall tax revenue collected. Additionally, the Center on Budget and Policy Priorities emphasizes that property taxes are the dominant source of tax revenue for local governments, further validating the claim.

However, it is important to note that while property taxes are a common source of revenue, their contribution can vary significantly by locality. For instance, in Washington, D.C., property taxes account for approximately 17% of local general revenues, as noted in the Lincoln Institute of Land Policy. This indicates that while property taxes are a vital revenue source, they are part of a diversified revenue system that includes sales and income taxes.

The sources cited are credible and provide a well-rounded perspective on the role of property taxes in local government finance. The Tax Policy Center and the Center on Budget and Policy Priorities are both reputable organizations that specialize in tax policy analysis, lending further credibility to their findings.

Conclusion

Verdict: True
The claim that property tax is a common source of revenue for local governments is true. Multiple credible sources confirm that property taxes are a significant source of revenue, making up a substantial portion of local government funding across the United States. While the percentage may vary from one locality to another, the overall trend indicates that property taxes are indeed a primary revenue source for local governments.

Sources

1. Washington, DC
2. Washington DC's Tax System 2022 - | ora-cfo
3. Cross-border cooperation: a global overview - SAGE Journals
4. How do state and local property taxes work?
5. Cross Border Trade: Bridging Economies Through …
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7. Economic Integration: Stages, Drivers, and Global Impact
8. How Local Governments Raise Revenue — and What it ...