Thanks to 60 Minutes, the public is starting to understand a problem that’s been discussed in financial circles for a long time, namely the horrible state of muni finances.
But even within that discussion, one issue hasn’t actually been discussed that much, and that’s the effect of falling property prices on property taxes.
WSJ noted that property tax changes generally lag housing prices by about three years, due to the timing of assessments. So we’ve seen big hits to housing that haven’t even shown up yet in tax receipts for cities.
Hedgeye charted the data, showing tax receipts against Case-Shiller, with a three-year lag.
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