How Do States Generate Tax Revenue?
States have various ways of generating revenue for their operating budgets. A state like New Hampshire relies heavily on the real estate tax because it does not have a sales or income tax. Some states, like New Jersey and Massachusetts, are in the middle of the pack when it comes to property taxes; though they both also have income and sales taxes.
States located in oil and gas producing regions of the country impose severance taxes. Examples would be Texas, Alaska and North Dakota. Some parts of Pennsylvania also have an exorbitant parking tax which affects commuters into bigger cities.
Taxpayers across the nation are punished more in some states than others, but the property tax usually carries with it the right to seek a reduction or refund (abatement) check. Property taxes do not necessarily have to be highly important in the operating budget for municipalities. If a tax assessment is out of balance compared to the fair market value, that usually is grounds for a taxpayer to at least consider the tax abatement process.
Allobar Strategies, a property tax consulting firm focuses on filing tax abatements on behalf of the taxpayers, and also assists with the negotiation process for the initial application, or the appeal application if applicable to the case.