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Property Tax Revenues

Increase for the 18 th

Straight Quarter

NAHB analysis of the Census Bureau’s quarterly tax data shows
that $541 billion in taxes were paid by property owners over the four
quarters ending in Q4 2016. This represents a $23 billion—or 4.5%—
increase over the previous trailing four quarters. Although this growth
rate declined for the first time in a year and a half, it remains robust
relative to other sources of state and local government revenue. Providing years of
Property taxes accounted for 40.0% of state and local tax receipts,
the largest share among major sources over the past four quarters, comfortable living.
followed by individual income taxes (28.4%), sales taxes (27.7%), and For over 100 years, Trane heating
corporate taxes (3.9%). and air conditioning systems have
Prior to Q4 2016, property taxes as a share of state and local tax ensured that you come home to
receipts had not reached 40% in nearly four years (Q1 2013). The unparalleled comfort and ef ciency.
increase is explained by the recent, five-quarter decline in corporate
tax receipts coupled with a steady increase in property tax revenues.
Since the second quarter of 2015, property tax receipts as a share
of the total have increased 1.0 percentage point while the share
attributable to corporate income taxes has fallen by 0.5 percentage
point. The ratio of property tax revenue to total tax revenue from
the four aforementioned sources remains three percentage points
above its pre-housing boom average of 37%.
The share of property tax receipts among the four major tax
revenue sources naturally changes with fluctuations in non-property
tax collections. Non-property tax receipts including individual income,
corporate income, and sales tax revenues, by nature, are much more
sensitive to fluctuations in the business cycle and the accompanying
changes in consumer spending (affecting sales tax revenues) and
job availability (affecting aggregate income). In contrast, property
To learn more about these and other reliable o learn more about these and other reliable
tax collections have proven relatively stable, reflecting the long- T comfort solutions, visit Trane.com
run stability of tangible property values as well as the smoothing
effects of lagging assessments and annual adjustments. Property
tax receipts are the least volatile revenue source, followed by sales
taxes, individual income taxes, and corporate income taxes, in order
of increasing volatility.
NAHB JUNE 2017

AUGUST 2017 | GREATER SAN ANTONIO BUILDERS ASSOCIATION 25