Looking at the calendar and the recession, researchers at the Federal Reserve Bank of Cleveland raised the specter of bad news for taxing authorities who have not updated their rolls since the downturn took its stranglehold on property values and have to revalue soon.

The report focused on Cleveland's Cuyahoga County, which must revalue in 2012, but it raises questions for municipalities everywhere that may not have updated the books since property values stalled.

"The fall in property values associated with the recent recession has caused a decline in property taxes which may be amplifying local government budget crises across the country," researchers Thomas J. Fitzpatrick IV and Mary Zenker wrote.

"The timing can vary by state, and it depends on how property values are calculated," the Fed staffers said.

One example where foreclosures hurt is California, they explained. There, values are changed as sales take place, so fire-sale prices on distressed property hurts the tax base right away. But in Ohio, they note, overall revaluation happens every six years and last was done in 2006.