Property Taxes Made Up Over One-Third of State and Local Tax Revenue in Q1 2022
The Census Bureau’s most recent state and local tax data reveals that property owners paid a total of $672.9 billion in taxes during the four quarters ending Q1 2022, NAHB Eye on Housing reports. Over the same period, state and local governments collected a record-high $1.9 trillion receipt, 35% of which came directly from property taxes.
Property taxes posted a 1.2% decrease from the previous quarter but remained stable at the start of 2022. In comparison, individual income taxes accounted for 30.8% of state and local tax receipts, while sales taxes made up 27.3% of the total and corporate taxes constituted a share of 6.9%.
The ratio of property tax revenue to total tax revenue from the four sources has been below its pre-housing boom average of 37% for the past four quarters. Quarterly corporate income tax revenues increased as a share of the total, accounting for 6.9% of state and local tax receipts (NSA), up from 6.2%.
Year-over-year growth of four-quarter property tax revenue has decelerated each of the past three quarters after accelerating each quarter from Q3 2020 to Q2 2021. Four-quarter corporate income tax, individual income tax, and sales tax revenue increased 74.5%, 21.7%, and 19.2%, respectively, year-over-year.