City property tax revenues continue to fall

The chart below shows the year-over-year percentage change in the revenue collected by U.S. cities from income taxes, sales taxes, and property taxes. The period covered is from 2004 to 2011.

After the start of the recession in 2008, sales tax and income tax revenue declined quickly and dramatically, while property tax revenue — the main source of revenue for most cities — actually rose in 2009. Thereafter, revenue from all tax sources declined in 2010. In 2011, overall tax revenues were down, although sales tax revenue increased modestly.

Many analysts expect sales and income tax revenue to continue to recover next year, while property tax revenue is expected to keep falling through 2012 and 2013.

The data in this visualization were collected by an annual survey of local finance officers by the National League of Cities and represent the aggregate changes in revenue in 1,600 U.S. cities. As such, it is important to note that the chart is not intended to suggest that tax revenue declined in all cities. Likewise, the scope of revenue loss among those cities that did experience declines has varied.