U.S. local governments’ property-
tax collections increased 6.2 percent during the second quarter
from the year before, the Census Bureau reported, easing the
strain on cities from the housing market crash.
The increase to $91.1 billion during the three months
ending in June marks a shift from the year before, when
collections dropped for the period. Including states, property
taxes rose 5.7 percent to $94.4 billion.
The rise indicates cities may be recovering from the worst
of the financial setbacks triggered by the slide in real-estate
prices, which forced them to dismiss workers and cut their
budgets to make up for the lost revenue. Such spending cuts have
been a drag on the nation’s recovery from the recession that
ended more than three years ago.
The Census report was released amid signs that low mortgage
rates are boosting the real estate market. In July, property
values in 20 cities rose 1.2 percent from a year earlier, the
biggest twelve-month advance since August 2010, according to the
S&P/Case-Shiller index, released today.
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