Report Shows Industrial Property Taxes in Columbia Very High


The following is from the 50-State Property Tax Comparison Study, published by the Lincoln Institute of Land Policy and Minnesota Center for Fiscal Excellence.

The chart below shows effective property tax rates for industrial properties with $1 million worth of real property for the largest city in each state. This analysis looks specifically at taxes on manufacturing properties. We assume that each property has an additional $1 million of personal property, consisting of $500,000 of machinery and equipment, $400,000 of inventories, and $100,000 of fixtures. Differences in personal property taxation have significant impacts on effective tax rates for industrial properties, as described in the box on the next page. Readers should use some caution when interpreting these results; see the box on comparing property taxes calculated with fixed property values for guidance

The average effective tax rate on industrial properties for the 53 cities in Figure 4 is 1.548 percent. A parcel with a real property value of $1 million that has an additional $1 million in personal property would thus owe $30,960 in property taxes (1.548% x $2m total parcel value). For shorthand, this section refers to parcels based on their real property values.

Tax rates vary widely across the 53 cities. The top five cities of Columbia (SC), Detroit, Jackson (MS), Memphis, and Houston all have effective tax rates that are at least 60% higher than the average for these cities. The bottom seven cities of Virginia Beach, Honolulu, Fargo, Cheyenne, Wilmington (DE), Seattle, and Louisville all have tax rates that are less than half of the average.

industrial taxes

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