Counties derive most of their revenue from real estate in most jurisdictions. In Anne Arundel County, MD, 47% of revenue is generated from property taxes.
Another source, albeit smaller, is also generated from real estate transactions. 5% of the revenue generated in our County comes from recording and transfer taxes on every sale.
As you can see from the chart below, the blue property tax bar has gone up consistently, even thru the difficult years. That’s because most Anne Arundel County property owners don’t pay taxes on the full assessed value of their home.
The red bar however, shows the decrease in transfer and recording taxes which was collected by the County. It’s very clear here that the real estate market hit its high in 2006 in Anne Arundel County, and has been in decline ever since.
All you have to do is ask the County Budget Officer whether the depression in real estate sales has hurt County revenues. In 2006, the revenue from recording and transfer taxes was $129.9M. This year it will be $56M, less than half. That money has to be made up somewhere, since it won't be generated from real estate.
Blue Bar = Property Taxes
Red Bar = Recording and Transfer Taxes
Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114
410-451-6255 Office
443-995-9595 Cell
Web: http://www.RichSellsHomes.com
eMail: Rich@RichSellsHomes.com
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Rich Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).
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Hi Richard: Here in So Cal...the County Tax Assessors office did a blanket Re-Assessment and you bet it hurt the County Revenues, just like it did in your area and every other area!
Rich - That is the crux of the situation with local governments around the country currently. Too many houses have been reduced in value, and bring in far less revenue. It's hard to balance budgets in that kind of environment!
JANE: We're due for a blanket reassessment at the end of the year. Values will go down.
MYRL: Once they get used to having the money, they want to see it every year. Not in real estate for the foreseeable future.
Richard
The issues is here in Florida tax revenue has dropped.
Good luck and success.
Lou Ludwig