The report standardizes comparisons using an effective property tax rate, calculated by dividing the total tax bill by the assessor’s determination of fair market value. The rates for other cities include:
- Dallas: 2.29%
- Houston: 2.15%
- Miami: 2.06%
- Washington DC: 1.65 – 1.89%
- Atlanta: 1.63%
- Nashville: 1.30%
- Los Angeles: 1.20%
- San Francisco: 1.18%
The study also compared property tax rates with sale prices, revealing disparities between tax assessments and market values.
The office sector is paying the highest taxes relative to current values, while industrial and multifamily sectors are paying the lowest.
“In most regions, we find that assessors are about 18 months behind on market trends, whereas our clients are 18 months ahead,” Sandi Prendergast, director of tax research at Altus Group, said in the report. “We work closely with our clients to bridge that gap and look at the reality as of the date of valuation to make sure that our clients’ properties are fairly assessed.”
Read next: NYC office property sold at 67% discount in short sale
