From Spengler:
"State and local property tax collections have risen by 10%, from $400 billion to $440 billion, since 2008, even though the price of homes in most American markets (red line) has fallen by 30% since 2008. Your house is worth less and your property taxes have gone up. Most of the $440 billion in property taxes is paid by homeowners. That compares with the $380 billion a year or so that homeowners pay on the $10 trillion in outstanding home mortgage debt. Homeowners now pay roughly as much in property taxes as in mortgages interest. It used to be a quarter to a third as much. No wonder home prices remain depressed."
Never really gave the issue much thought, but that statement in bold caused me to get out the calculator. Not sure that I am typical, but, in 2012, I'm on pace to pay $4,200 in mortgage interest. According to my Tax Duplicate from the County Treasurer, the property taxes on my house will be $2,213.18 this year. Whew!
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Getting out my calculator (and slashing off a lot of zeros) those numbers indicate that the average interest rate on the 10 trillion is 3.8% ??
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