Cities With the Highest, Lowest Tax Rates

N E W  Y O R K, May 14 -- Here are the five U.S. cities with the highest and lowest property tax rates.

The Five Highest

1. Bridgeport, Conn.

Nominal Rate (per $100): $6.50 Assessment Level: 70 percent Effective Rate (per $100): $4.55

Although Bridgeport's experience hiking property taxes should serve as a lesson to other financially strapped areas considering similar actions, the city seems to have recovered remarkably well. Last month it was announced that Bridgeport avoided a potential budget gap, due to a little shifting of funds, and the city should be able to avoid raising taxes. It's bound to be an improvement from the bankruptcy blues the city sang 10 years ago.

2. Des Moines, Iowa

Nominal Rate (per $100): $4.44 Assessment Level: 90 percent Effective Rate (per $100): $4.00

Homeowners in Des Moines are very unhappy with talk of rising property taxes. A recent survey conducted by the Des Moines Register found that when comparing sales taxes, income taxes and property taxes, Iowans found property tax hikes the least fair. Some of the proposals floating around to avoid further property tax hikes include rolling out a flat income tax rate of 3.5 percent, assessing all property based on market value (versus the tax assessment) or implementing a statewide property tax.

3. Providence, R.I.

Nominal Rate (per $100): $3.59 Assessment Level: 100 percent Effective Rate (per $100): $3.59

Similar to many other cities on this list, the vast majority of Providence's tax revenue comes from property. Unfortunately, tax-exempt organizations own about 40 percent of the property in Providence. The city, which is projecting a $34 million deficit in 2004, is hoping to cut costs and raise additional revenue — without increasing taxes — from such things as dog licenses and towing fees.

4. Newark, N.J.

Nominal Rate (per $100): $26.40 Assessment Level: 11.8 percent Effective Rate (per $100): $3.12

For the first time in years, Newark homeowners saw properties reassessed — and they weren't happy. Some owners claim their tax bills will be doubled. And in 1997, Newark residents paid more property taxes per capita ($1,591) than the other 49 cities included in the annual tax-burden comparison.