Real Estate Crash Catches Up to Cities as Property Taxes Slide

Bloomberg reports:

The real-estate crash is catching up to U.S. municipalities.

Cities, counties and school districts had been sheltered from the full impact of the slump because of the lag between when realty prices fluctuate and values are reset by local tax assessors. That’s changing as property rolls are adjusted to the current market and residents push to have their taxes cut.

Local officials are now facing the consequences. Property- tax revenue dropped in the last three months of 2010 at the fastest pace since home prices slipped from their peak more than four years ago, the Census Bureau said yesterday.

They were planning on higher and higher home prices from now to doomsday.