A Reconnaissance of Alternative Measures of Effective Property Tax Rates

Abstract

Informed policy discussions on local property tax reform initiatives require accurate and reliable information about the tax's current use. This paper reviews two popular measures of property tax burden and their limitations. The paper then reports the results of a reconnaissance of measures of effective property tax rates and how they vary across the 50 states. The paper also reports the findings of a 50‐state survey that indicates how states calculated and reported effective property tax rates. These comparisons lead to a suggested framework for certain methodologies for calculating effective property tax rates.