Property taxes still the biggest revenue source
PROPERTY related taxes have remained the largest source of revenue for state and local governments and despite weaker market conditions over the 2011/12 financial year, property related taxes rose to new highs. Throughout the 2011/12 financial year, $33.515 billion in property-related taxes were collected by state and local governments. The $33.515 billion in taxation equated to 46. per cent of all taxation revenue for state and local governments over the year, down from 47.2 per cent over the 2010/11 financial year. The total amount of property related taxes rose by 0.9 per cent over the financial year and although it represents a further increase in the tax take, it is the smallest annual change in revenue since revenue fell -10.4 per cent over the 2008/09 financial year.
Taxation revenue increased throughout the 2011/12 financial year, despite the fact that the country’s largest single asset class (residential housing) recorded much weaker conditions.