Assessment Disparities, Lack of Revenue and Other Unintended Consequences of Capping Property Tax Growth

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

In 2014, several states, including New York, Indiana, Missouri and Nevada, enacted property tax cap laws or considered changes to existing laws capping property tax growth. Tax lightning, the after-effects of housing bubble bursts and disproportionate relief for wealthy homeowners are examples of problems experienced by other states that have administered property tax caps for longer periods of time. States recently implementing or considering property tax caps should learn from these problems and build mechanisms from the start to avoid the same pitfalls.