Don’t count on your property taxes declining as the price tag on your home falls. In fact, in many parts of the country, homeowners will likely find their property taxes going in the opposite direction of home prices.

The reason, says one news source, is because despite the downturn, the market value of millions of homes still exceeds their assessed value used for tax purposes.

Property taxes from homeowners and businesses go mostly to local governments to pay for things like schools, roads, police and other services. Collections reportedly rose 7 percent last year to a record $377 billion, even though the median home price climbed only 1 percent nationwide and dropped in many places.

According to sources, all but five states limit how fast property taxes can rise. After a decade of soaring hosing prices, experts estimate it can take years for a home’s tax value to catch up with its market value, even in today’s softening market.

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Another reason few tax bills will shrink is delayed assessments — property taxes are often based on market values that are several years old.

Lastly, many local governments where home values have softened are increasing tax rates to offset lower assessments.

So who stands to benefit from falling home values? People who bought recently at the market peak and are now seeing their home prices drop, offered one source.

"To get a tax cut, you have to buy a home at the peak and have it lose value quickly. You can’t enjoy double-digit increases in your home value and then expect a tax cut when the market dips,” one expert was quoted as saying.

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