LFC911
WKR
Would a sales tax help take some of the burden off of property taxes or just give more money to the govt?
Completely agree...."Tradegy of the Commons"....theme for the US unfortunatelyIf there were only buyers and sellers this might be valid, but you've got hedge fund builders and investors (a new development near me was built by BlackRock) doing things to local economies via overbuilding and densifying that negatively affect the rest of the world. Sure, my house value goes up, but not enough to even get close to incentivize me to sell because i can afford nothing else in the area.
It is yet again the Tragedy of the Commons. Apparently we can't learn...
Yup, Florida has something similar called a homestead exemption. If it is your primary residence and you are a resident, the value at purchase gets locked in for property tax purposes (-50k) and can only rise 3% max a year.There will definitely be some folks in Montana (because they bought their home 20+ years ago) that simply won't be able to pay the property taxes, maybe already is.
Not sure if there other states, but California "freezes" your appraised value at the time you purchase your home—this is what they calculate your taxes with and as along as you continue to reside in it. This only applies to residents of the state and the home has to be your primary place of abode- not your second, third home.
We had a similar initiative come up last legislative cycle and evidently it didn't have required number of signatures—I never saw sign up sheets, but would gladly have signed. Local, county and state officials and legislators were up in arms about it and vowed to fight it in the courts, which told me the people that drafted the initiative were definitely on the right track.
Would a sales tax help take some of the burden off of property taxes or just give more money to the govt?
The percentage of a person’s income that goes to sales taxes is the least for high incomes and hurts lower income families. Sales taxes are known as one of the the most regressive. Eliminating sales tax on food and basic necessities goes a long way to help.Would a sales tax help take some of the burden off of property taxes or just give more money to the govt?
We’re not really comparable to many states - the biggest driver that lets us avoid income tax is the large amount of money raised on oil&gas, and mining.I look at Wyoming who have had a sales tax for decades. If I understand their legislation that enacted it, it stays at 4% forever unless the the voters want it higher- Wyoming guys can correct that if wrong.
Not sure it impacts their property tax, BUT with that legislation they completely eliminated their state income tax. Now that tourism/recreation closely vies with agriculture as the number one industry- getting rid of our income tax while paying 4% on goods (sans exceptions like medical services, prescriptions and food (grocery store food) would be a worthwhile trade
I’m definitely writing my representative and senator letting them know I’m watching their work on this property tax debacle.
If sales tax hurts lower income familles and property taxes hurt the presumably middle to higher income families, I’m not sure we’re going to solve this issue. Kind of like if we should do otc tags in ID vs a draw, the money has to come from somewhere.The percentage of a person’s income that goes to sales taxes is the least for high incomes and hurts lower income families. Sales taxes are known as one of the the most regressive. Eliminating sales tax on food and basic necessities goes a long way to help.
simply born too late. young people will need a miracle at this point. anyone looking to adopt and pass down an inheritance?
just gives more money to the state. Texas is well on its way to destroying ourselves. 8.25% sales tax. property taxes are generally over 3% and the appraisal districts just keep ratcheting up the values.Would a sales tax help take some of the burden off of property taxes or just give more money to the govt?
this is true and is oft cited to make Texas seem like a low cost state. Reality is that it's just not as true as it once was.^ you guys have NO state income tax
If tourism wasn't our #2 industry (might be close to tying for #1) I would never even consider a sales tax. As it is, tourists get a free ride—on us. They would contribute a healthy share of $ with a sales tax.
I'd only support it if it got rid of our state income tax AND could only be raised by a vote of the people of Montana.
We're paying right at 6% for income tax, there is no way in hell I'd be paying that much with a 4% sales tax (exempting groceries/medical). Montana even wants income tax on Social Security!
Idaho has entered the chat. 5.7% state income tax and 6% sales tax.We're paying right at 6% for income tax, there is no way in hell I'd be paying that much with a 4% sales tax (exempting groceries/medical). Montana even wants income tax on Social Security!