Authorizing Local Tax Swaps

H.3562 would allow counties via referendum to impose a new 1 percent sales tax in order to fund a credit against local school property tax. Essentially localities would be able to increase sales tax in order to decrease property tax.

Such a shift would be essentially regressive, shifting a tax burden from relatively more wealthy (on average) property owners to relatively less wealthy renters (who will only see the sales tax increase and no other tax relief). There is nothing inherently wrong with attempting to reduce the burden of property taxes, but a reduction should not be accompanied by an increase in other taxes.

Print Friendly, PDF & Email

Category: Legislation, Tax Reform · Tags: