Making The Ranking: St. Louis Property Taxes

April 13, 2015

When you’re planning a real estate investment, the assets and detriments of a property are often easy to see: the condition of the property, location, price and potential for the space. Just as important, however, are factors like maintenance costs, vacancy rates, insurance and property taxes. In fact, the latter of these is usually the second biggest fixed cost real estate investors consider when calculating their potential cash flow.

Thankfully, St. Louis investors are enjoying some of the lowest property tax levels in the nation. Real estate information company Realty Trac recently released the results of its first-ever study on the topic, and their “U.S. Property Tax Rates Report for 2014” reveals that the Midwest city is ranked in the top ten for desirable property tax levels.

In determining which areas had the highest and lowest tax rates, RealtyTrac relied on two metrics, the average property taxes paid and the effective tax rate for the more than 1,000 counties studied nationwide with populations equal to or exceeding 100,000, accounting for a majority of the U.S. population.

Based on those effective tax rates here are the top 10 best markets for property taxes:

  1. Sussex County, Delaware – Effective tax rate: 0.23 percent
  1. Baldwin County, Alabama – Effective tax rate: 0.28 percent
  1. Hardin County, Kentucky – Effective tax rate: 0.30 percent
  1. Terrebonne Parish, Louisiana – Effective tax rate = 0.37 percent
  1. Davidson County, North Carolina – Effective tax rate: 0.38 percent
  1. Montgomery County, Alabama – Effective tax rate: 0.40 percent
  1. Morgan County, Alabama – Effective tax rate: 0.41 percent
  1. Mesa County, Colorado – Effective tax rate: 0.43 percent
  1. St. Louis City, Missouri – Effective tax rate: 0.43 percent
  1. Lafayette Parish, Louisiana – Effective tax rate: 0.44 percent

“Especially for an investor looking at a market outside their comfort zone, property taxes are something they need to factor into their cost of investing,” says Daren Blomquist, vice president at RealtyTrac. “That could be the difference between healthy cash flow and a property that’s a money pit.”

If you’re considering a real estate investment, contact the professionals at Intelica. We can help you evaluate all of the costs involved, ensure optimal cash flow and find the right space for your needs.