2013 CFED Scorecard

Financial Assets & Income

Outcome Measures

Income Poverty Rate

Asset Poverty Rate

Asset Poverty by Race

Asset Poverty by Gender

Asset Poverty by Family Structure

Liquid Asset Poverty Rate

Liquid Asset Poverty by Race

Liquid Asset Poverty by Gender

Liquid Asset Poverty by Family Structure

Extreme Asset Poverty Rate

Net Worth

Net Worth by Race

Net Worth by Income

Net Worth by Gender

Net Worth by Family Structure

Unbanked Households

Underbanked Households

Households with Savings Accounts

Consumers with Subprime Credit

Borrowers 90+ Days Overdue

Average Credit Card Debt

Bankruptcy Rate

Policy Priorities

Tax Credits for Working Families

State IDA Program Support

Lifting Asset Limits in Public Benefit Programs

Protections from Predatory Short-Term Loans

Additional Policies

Income Tax Threshold

Tax Burden by Income

Prize-Linked Savings

Paperless Payday

Trend Indicators

Change in Net Worth

Change in Asset Poverty

Change in Liquid Asset Poverty

Change in Consumers with Subprime Credit

Change in Average Credit Card Debt

Businesses & Jobs

Housing & Homeownership

Health Care

Education

CFED Assets & Opportunity Scorecard

Property Tax Relief

Reports & Graphics

Definition

A set of state policies that assist homeowners in meeting their property tax burden, including circuit breakers and tax deferment, 2011.

Description

Property taxes are an important revenue source for local governments, but they can be burdensome for low- and moderate-income families, particularly for those that have experienced housing cost increases greater than increases in their incomes. Furthermore, even during periods of decreasing housing costs, tax burdens may continue to rise due to the way states and localities calculate property tax. States have used many strategies to reduce property tax burdens, including those that provide relief more widely to all homeowners, e.g., homestead exemptions and assessment caps. More effective, however, are programs targeted at homeowners that need relief most.

States are assessed on the adoption of the following direct property tax relief programs:

1. Circuit breakers: Circuit breakers are property tax relief programs that target low- and moderate-income homeowners. Property tax circuit breakers provide households with direct property tax relief that increases as household income declines. Circuit breakers kick in when property taxes exceed a certain percentage of a household's income and provide a property tax rebate or tax subsidy for qualifying households. States are assessed on three elements of a circuit breaker program:

  • Is the circuit breaker state-funded? Local funding can be problematic because some local governments are better able to provide relief than others. In addition, some localities will have a higher percentage of homeowners requiring assistance. States are better suited to administer programs that redistribute income such as property tax relief.
  • Are people of all ages eligible? States often provide circuit breakers for only the elderly or disabled, using those characteristics as a proxy for financial need. However, financial hardship is not limited to particular groups, and poverty rates are currently lower for the elderly than they are for working-age adults.
  • Are renters and homeowners eligible? Renters do not receive a property tax bill, but it does not mean that they do not pay the cost of property taxes. Landlords pass property tax burdens on to renters through higher rent, and generally, renters have lower incomes than homeowners.

2. Tax deferrals: Property tax deferral programs allow homeowners to defer payment of all or a portion of their property taxes until the sale of their property or death. The deferred taxes become a lien against the value of the home and are, in essence, a public sector reverse mortgage. Most states target these programs towards low-income, elderly homeowners. Tax deferrals can help homeowners stay in their homes, particularly for those with high property tax burdens.

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Property Tax Relief

StateIs there a state-funded circuit breaker?Are all eligible?Are renters eligible?Deferral?
Alabama  No  —  —  No 
Alaska  No  —  —  Yes 
Arizona  Yes  No (Elderly and disabled only)  Yes  Yes 
Arkansas  No  —  —  No 
California  Yes  No (Elderly and disabled only)  Yes  Yes 
Colorado  Yes  No (Elderly and disabled only)  Yes  Yes 
Connecticut  Yes  Yes  No  Yes 1
Delaware  No  —  —  No 
District of Columbia  Yes  Yes  Yes  Yes 
Florida  No  —  —  Yes 
Georgia  No  —  —  Yes 
Hawaii  No 2 —  —  No 
Idaho  Yes  Yes (Elderly and disabled; veterans; POWs; fatherless or motherless minors; widows or widowers)  No  Yes 
Illinois  Yes  No (Elderly and disabled only)  Yes  Yes 
Indiana  No  —  —  No 
Iowa  Yes  No (Elderly and disabled only)  Yes  No 
Kansas  Yes  Yes (Elderly and disabled; a surviving spouse of a member of the active duty military who died in line of fire; a person with one or more dependent children under the age of 18)  Yes  No 
Kentucky  No  —  —  No 
Louisiana  No  —  —  No 
Maine  Yes  Yes  Yes  Yes 
Maryland  Yes  Yes  Yes (Renters must be elderly, disabled, or have gross income below the federal poverty threshold and have one or more dependent children living with in the household)  Yes 
Massachusetts  Yes  No (Elderly only)  Yes  Yes 
Michigan  Yes  Yes  Yes  Yes 
Minnesota  Yes  Yes  Yes  Yes 
Mississippi  No  —  —  No 
Missouri  Yes  No (Elderly and disabled only)  Yes  No 
Montana  Yes  Yes  Yes (Renters must be elderly)  No 3
Nebraska  Yes  No (Elderly and disabled only)  No  No 
Nevada  Yes  No (Elderly only)  Yes  Yes 
New Hampshire  Yes  Yes  No  Yes 1
New Jersey  Yes  Yes  Yes  No 
New Mexico  Yes  No (Elderly only)  Yes  No 
New York  Yes  Yes  Yes  No 
North Carolina  Yes  No (Elderly and disabled only)  No  No 
North Dakota  Yes  No (Elderly and disabled only)  Yes  No 
Ohio  No  —  —  No 3
Oklahoma  Yes  No (Elderly and disabled only)  No  No 
Oregon  Yes  Yes  Yes 4 Yes 
Pennsylvania  Yes  No (Elderly and disabled only)  Yes  No 
Rhode Island  Yes  No (Elderly and disabled only)  Yes  Yes 1
South Carolina  No  —  —  No 
South Dakota  Yes  No (Elderly and disabled only)  No  Yes 
Tennessee  No  —  —  Yes 
Texas  No  —  —  No 
Utah  Yes  No (Elderly only)  Yes  No 
Vermont  Yes  Yes  Yes  No 
Virginia  No  —  —  Yes 1
Washington  Yes  No (Elderly and disabled only)  No  Yes 
West Virginia  Yes  Yes  Yes (Renters must be elderly)  Yes 
Wisconsin  Yes  Yes  Yes  Yes 
Wyoming  Yes  No (Elderly and disabled only)  No  Yes 1

Source

“Significant Features of the Property Tax.” Lincoln Institute of Land Policy and George Washington Institute of Public Policy. Data accessed in December 2012 at http://www.lincolninst.edu/subcenters/significant-features-property-tax/Report_Residential_Property_Tax_Relief_Programs.aspx.

"—" indicates that no data is available.

Footnotes

1. In Connecticut, New Hampshire, Rhode Island, Virginia and Wyoming, a deferment of property tax is only available in some localities within the state.

2. Hawaii offers a state-funded circuit breaker program, but each county applies its own qualifications. In Maui, all homeowners are eligible; in Honolulu, only elderly residents qualify. The circuit-breaker program is not in place in all counties.

3. In Montana and Ohio members of the military may qualify for a deferment of property taxes.

4. In Oregon, though renters are eligible for a state-funded circuit breaker, homeowners are not.

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