The disadvantages of the property tax

The property tax tends to be in large lump sum payments, although in many places today the tax can be paid quarterly.

There is no direct relationship between the property tax paid and the governmental service provided.

The public rates the property tax as the most unpopular of taxes. In terms of other taxes, the state income tax raises $21.5 billion per year statewide and the sales tax (both state and local parts) raises $16.5 billion.

Assessments may be perceived as unfair or inequitable. Fractional assessments that vary from locality to locality may add to this belief.

The property tax tends to be stable.
Property market values are generally not subject to the whims of the stock market or to the economy.

It is a broad tax.
Property tax reaches all sectors of the economy: residential, agricultural, forestry, commercial, industrial, and utility. This also adds to the stability of the tax. It generates more than one-third of the revenues received by local governments.

It is difficult to evade.
Because the property tax is secured by the property, the tax has a high compliance rate. Property owners pay more than 95% of the tax levied--very few owners do not pay their property tax. Those that do not pay have up to 3 years to redeem their property by paying the tax, plus penalties and interest.

Very few properties are acquired and resold each year for failure to pay. Banks and mortgage companies aid many taxpayers by collecting taxes as part of the monthly mortgage payment and paying the tax bill for the homeowner. This is typically referred to as the "escrow" or "tax escrow" part of a monthly mortgage payment.

Administrative costs are low.
It costs less than $7 per $1000 raised in property taxes.