If you have been reading our past posts, you know that we are very concerned that if we stay on the path of ever escalating property taxes, we will price seniors and those living on fixed incomes out of their homes. We have wondered if we could eliminate the property taxes for those 65 years of age or older and for those on other forms of fixed incomes.
To that end, we were doing some research on-line and found a very interesting website that dealt with property taxes as a funding mechanism for public schools.
Take a look at the following answer to the question: Will States ever eliminate the use of property taxes for school funding?
“The property tax has incredible staying power. Andrew Reschovsky’s research has demonstrated its resiliency during economic downturns when other taxes (sales, income, for instance) prove to be more volatile. Predictability in revenue collections is a highly sought after feature for state and local policymakers and administrators responsible for setting and implementing school budgets. If a state were to eliminate the property tax, it would have to swap out those revenues for other revenues, likely income, sales or excise taxes, which tend to be far more volatile, and in some instances more regressive, than the property tax. For these reasons, Daphne Kenyon has demonstrated that targeted relief for property taxpayers has been the preferred option for policymakers when tax revolts erupt or when the elimination of the property tax is on the table. (emphasis added by LFC)
For these reasons I don’t see states abolishing, whether at the state or local level, reliance on the property tax.”
LFC Comment: So it appears that our thoughts about eliminating property taxes for those 65 and older may be a real possibility.
I just heard an advertisement for a candidate by the name of Phil Robinson running for the State Representative in House District 6. He is the first, and only candidate from either party that I have heard that says he wants to fix the school funding once and for all. He realizes that the State has put an undue burden on the average middle class citizen. Wow, finally somebody that is worried about school taxes.
Categories: Real Estate Taxes