Do More Families Equal Higher Taxes?

Photo Credit: Emma Bauso


Do More Families Equal Higher Taxes?

By: Donna Forest, Broker Associate

The lack of overall housing in our state is keeping prices higher and buyers on the sidelines, or even worse, leaving our state. We are seeing a significant housing crisis. Unfortunately, new construction is still playing catch up from the years of under building and many towns are reluctant to help address this major economic issue. Why? One of the reasons is a fear that housing for additional families will mean a higher property tax rate is needed to pay for public schools. Is this true? The answer is emphatically “NO”. Adding children to a school district does not equate to higher property taxes. This was proven in a 2019 study by Univ. of NH Professor Emeritus of Economics Robert England “Will More Kids in Town Raise the Local Tax Rate?” This report analyzed enrollment data from all 167 school districts from 2007 to 2017 and then compared the data to property tax figures during the same period. The results showed that changes in tax rates are not related to changes in public school enrollment and shouldn’t be used as a way to oppose new housing. Please bear this in mind as you consider how to keep your community viable and economically sound.

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