Property tax: Rate doesn't tell whole story

Each spring, taxpayers can’t help but think about how much we work to pay for government functions. Yes, despite the fact that we benefit from most of those functions in thousands of ways, it’s easy to resent that. No, we don’t have much choice. Or do we?

Leaving income tax for the moment, most do have choices when it comes to where we plant roots. It’s not impossible to move from one state to another in this massive country of ours, and property taxes can influence that decision. Should they?

Again, it’s too easy to make snap judgments about rates. Consider that while the District of Columbia’s .57 percent effective property tax rate appears lower than Idaho’s .77 percent, the average D.C. resident pays twice the annual property taxes ($2,601) of the average Idahoan ($1,237). That’s because the median home price here, in the 14th lowest rate state, is a lot cheaper. You wouldn’t want to live in our median $160,000 home there without a Fort Knox security system.

According to the Census Bureau and WalletHub.com, which assimilates such data for meaningful analysis, other Inland Northwest states aren’t much closer. Washington and Oregon both have property tax rates of 1.08 percent, with $2,500-$2,700 annual payouts for median homes in the $230,000-$250,000 range.

The lowest rate is in Hawaii at .28 percent. With a median home value around $500,000, the average Hawaiian still pays more than he would here ($1,405). At the other extreme, three states — New Hampshire, Illinois, and New Jersey — have rates above 2 percent and average property tax bills in the $4,000 to $7,000 range.

Some stereotypes hold true. Blue states have higher rates, and red states, lower.

Should people consider property taxes when they move, and when they vote? Real property and financial experts tend to agree that it’s a valid consideration. But only as part of a bigger picture.

Whatever the bill, do residents get what they pay for? How are the quality of life and level of public service, policing, education, emergency services, public transportation, and parks? It’s not just how much we pay, it’s how well and for what it’s being spent. Some see money wasted. To others, paying more is worth the tradeoff.

We can’t analyze taxes in a vacuum, and it’s too easy to criticize and complain. Individual priorities vary as much as the tax bills; that’s why one city can feel so different from another in this big nation.

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Sholeh Patrick is a columnist for the Hagadone News Network who thanks Mr. Professor Person for today’s topic. Contact her at Sholeh@cdapress.com.