WalletHub: R.I. most expensive for motor vehicle property taxes

PROVIDENCE – Rhode Island has the highest vehicle property taxes in the nation at an average of $1,133, according to WalletHub’s latest survey of the highest and lowest property taxes in 2015.
And when it comes to real estate taxes, the Ocean State fared only a little better, coming in 10th highest for an average of $2,779, the personal finance website said.
WalletHub said the average American household spends $2,089 on property taxes for their homes each year, and residents of the 27 states with vehicle property taxes spend another $423 on average.
It also said that approximately $15 billion worth of homes are foreclosed upon as a result of property tax delinquencies each year, citing a 1012 National Tax Lien Association study.
So WalletHub analyzed the 50 states and the District of Columbia in terms of real estate and vehicle property taxes. It calculated real estate property tax rates by dividing the median real estate tax payment by the median home price. As for vehicle property tax rates, it based calculations assuming ownership of 2014’s highest-selling car – the 2015 Toyota Camry L four-door sedan, valued at approximately $22,970.
New England states generally were higher than other states in terms of property taxes.

While Rhode Island was the most expensive for motor vehicle property taxes, Connecticut came in fifth highest with an average of $630; Maine was seventh highest at $551; and Massachusetts was eighth highest at $517. New Hampshire was 11th highest at $413. Vermont performed the best in this category, as WalletHub said it does not charge motor vehicle taxes.

New Hampshire ranked third highest for real estate taxes at $3,649, while Connecticut was sixth highest at $3,301. Vermont ranked ninth highest at $2,934 on average. Maine was 17th highest at $2,165, while Massachusetts was the lowest among the New England states at 21st, with $2,042.

A panel of experts also was asked if they think people should consider property taxes when deciding where to move, among other questions.
William T. Mawer, professor of legal studies at Southeastern Oklahoma State University, said he has seldom seen any purchaser of property consider the real property taxes when purchasing.
“Payment of the monthly mortgage amount, which generally includes the escrow portion of real estate taxes, is the key determinative factor for individuals. Of course they should consider it but they don’t,” he said.

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