Credit Rating Agency Warns Recession Could Trigger Property Tax Hikes

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Credit Rating Agency Warns Recession Could Trigger Property Tax Hikes

Fitch Ratings said Friday that the outlook for state and local governments was “deteriorating” and an expected recession could put pressure on state and local governments to raise property taxes.
“Local governments may face slowed growth or possibly contraction in tax revenues associated with real property valuations, which may trigger expenditure controls or revenue-raising measures to preserve budgetary stability,” Fitch Ratings Senior Director Michael Rinaldi said.
Several factors “could pressure property taxes more quickly than in the past,” according to a U.S. States and Local Governments Outlook 2023 report from the credit rating agency.
Many U.S. states and local governments have been able to build up a financial cushion that could help them withstand an expected mild recession by the second quarter of 2023, according to the report....

Source: Credit Rating Agency Warns Recession Could Trigger Property Tax Hikes

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