State and native governments noticed property tax revenue develop in the primary quarter, but the most recent enhance mirrored a slowdown from the reported tempo a 12 months earlier.
The quantity of property tax collected between January and March got here in at $203.4 billion to begin the 12 months. The complete surged 5.2% on an annual foundation from first-quarter 2024 numbers of $193.3 billion.
Quarter over quarter, revenue elevated by a seasonally adjusted 1.1% from $202.1 billion.The tempo of growth, although, was cut nearly in half from the two.1% price in the identical three months in 2024.
“While this does present growth over the quarter, growth has notably slowed over the previous 12 months,” wrote researchers on the National Association of Home Builders in its evaluation of U.S. Census Bureau information.
For calendar 12 months 2024, property tax revenue surged 8.2% but the tempo narrowed in later quarters, with the development persevering with into the primary three months of 2025, the information confirmed.
While the affect of final November’s election might not present the complete affect on state coffers but, the pullback in growth comes after voters in a number of states voiced their help for measures that stood to decrease property taxes in their jurisdictions.
An initiative to utterly get rid of property taxes in North Dakota didn’t go.
How property tax revenue compares to different sources
Total tax collected by state and native governments stood at $538.3 billion. The quantity grew 1.3% quarter over quarter and 5.8% on an annual foundation.
Property taxes normally account for the biggest proportion of collections revenue, and so they made up 37.8% of the entire in the primary quarter. The share was close to par with the full-year 2024 slice of 38%. The share was 37.9% over the identical three-month interval final 12 months .
By comparability, first-quarter state and native gross sales taxes added as much as $148.9 billion, representing 27.7% of revenue. Personal earnings taxes got here in simply behind with a 26.1% share, equal to $140.5 billion collected.
Making up the smallest portion was company earnings taxes, which totaled $45.4 billion and made up 8.4% of revenue.
Collected gross sales tax grew 0.9% from the fourth quarter of 2024. Individual earnings tax revenue noticed an uptick of 0.2%. The company tax class noticed the quickest tempo of growth at 6.6%.
