Utah ranks 12th lowest in property tax revenue

Utah – According to the U.S. Census Bureau, property taxes are the second-largest source of U.S. state and local tax revenue, making up an average of 16.6% of state and local tax revenue.

Falling in line are taxes generated from individual income (12.9%) and sales taxes (12.5%), while the leading revenue source comes from intergovernmental funds (22%), which are made up of funds transferred most commonly from federal to state or local government through grants, loans, etc.

Each differs to a varying degree when looking at individual states. There are nine states, for example, that do not have a state income tax, and five that do not have state sales tax.

Some states have caps on property tax rates, or restrictions around how property valuations are conducted, that limit the amount of revenue from property taxes, according to U.S. Census Data.

In summary, individual tax burdens are going to look different in every state, and in Utah, 11.7% of the general tax revenue comes from property taxes, collecting the 12th lowest percentage of property tax revenue out of all states.

Alabama comes in last on that list, with only 6.9% of general tax revenue coming from property taxes.

At the top of the list is New Hampshire (a state with no sales or income tax), with over a third of general tax revenue (36.5%) coming from property taxes.

Forecasters had serious concerns about state budgets during the pandemic, however, falling unemployment, rising wages, and strong consumer spending led to resilient state and local government budgets.