Go to Table 17.1 and find the property tax rate for the largest city in your state. Is that rate above or below the national average? If it is above the national average, what effect on property values is likely? If it is below the average, what effect is likely to result? Why is the national average property tax rate likely to affect the return to capital in investments other than real estate?

Transcribed Image Text:

TABLE 17.1 Residential Property Tax Rates in the Largest City in Each State," 2007 NOMINAL RATE ASSESSMENT EFFECTIVE RATE RANK CITY ST PER S100 LEVEL (N) PER $100 1 Bridgeport Indianapolis Philadelphia Houston CT 4.13 70.0 2.89 2.75 2.64 2 IN 2.75 100.0 3 PA 8.26 32.0 100.0 100.0 TX 2.53 2.53 2.44 2.28 2.26 5 Baltimore MD 2.44 9. Providence RI 2.28 2.26 4.59 100.0 7 Milwaukee WI 100.0 8. Des Moines IA 45.6 2.09 6. Detroit MI 6.56 45.90 2.05 7.47 31.0 2.03 10 Fargo Omaha ND 2.03 1.99 4.4 NE 97.0 23.3 11 12 Memphis Jackson TN 1.74 13 MS OH 17.16 10.0 1.72 14 Columbus 4.84 35.0 1.69 15 Burlington Atlanta VT 1.69 100.0 1.69 16 GA 4.18 40.0 1.67 17 Newark NJ 2.49 64.4 1.60 1.57 18 Jacksonville FL 1.67 93.8 19 Portland ME 1.63 4.86 95.0 1.55 1.46 20 Albuquerque Wilmington Anchorage Billings NM 30.0 21 DE 3.24 47.2 1.53 22 AK 1.45 100.0 1.45 23 MT 2.12 67.0 1.42 24 Little Rock AR 7.05 20.0 1.41 Sioux Falls New Orleans 25 SD 1.65 85.0 1.40 1.39 26 13.85 11.77 1.24 1.30 10.0 11.5 LA 27 Wichita KS 1.35 28 Louisville KY 100.0 1.24 29 Charlotte NC 93.8 11.0 1.22 30 Oklahoma City Manchester OK 10.98 1.20 1.27 6.13 1.21 31 NH 100.0 1.20 32 Boise ID 92.8 1.18 33 Kansas City Minneapolis Salt Lake City Las Vegas Los Angeles Boston 19.0 1.16 34 MN 1.23 1.15 93.9 1.15 35 UT 100.0 1.20 36 NV 3.27 35.0 1.14 37 CA 1.10 1.10 100.0 1.10 1.10 38 MA 100.0 39 Portland OR 2.17 49.2 1.07 40 Columbia SC 24.60 4.0 0.98 0.97 41 Phoenix AZ 9.67 10.0 Virginia Beach Washington Seattle 0.89 0.88 0.86 42 VA 0.89 100.0 43 DC 0.88 100.0 86.8 44 WA 1.00