House Bill 25 would replace Property Taxes with a 3% increase in Sales Taxes and a 1.5% increase in Income Taxes.
Sales and Income taxes are collected by the state, and sure enough, just like the Business Gross Receipts Tax Scam, this bill is nothing but a monkey wrench just waiting to be thrown into the system.
"Distributions to school districts shall be based on the amount of real property tax collected by each school district during the base year..."
So what's a base year?
"Base year." The first fiscal year of a school district, municipality or county beginning after June 30, 2005.
So the calculations of the share of state money will depend on the snapshot of where your school district is at - THIS YEAR. If it's growing, too bad. If it's shrinking, more power to ya!
This bill is incomplete compared to the Gross Receipts bill in it's detail - but basically is the same as last year's bill only in your face and on your bill.
They did eliminate the rhetoric-filled criticisms about the Gross Receipts bill - that it taxed food, school tuition, the bible, you name it. But this bill is little better.
The big questions are:
OK, so by now you get that I don't like this bill - so what's MY idea, right?
Thanks for asking!
The same idea I will say over and over.
I agree in principle with shifting the property tax burden off our senior citizens and all homeowners onto either an increase of our income tax or if necessary, the sales tax.
But I would only propose eliminating property taxes on actual, single primary residences (100% homestead exemption). Perhaps property tax reduction for businesses, but not to the detriment of shifting taxes paid by businesses to individuals.
Sales and Income taxes are collected by the state, and sure enough, just like the Business Gross Receipts Tax Scam, this bill is nothing but a monkey wrench just waiting to be thrown into the system.
"Distributions to school districts shall be based on the amount of real property tax collected by each school district during the base year..."
So what's a base year?
"Base year." The first fiscal year of a school district, municipality or county beginning after June 30, 2005.
So the calculations of the share of state money will depend on the snapshot of where your school district is at - THIS YEAR. If it's growing, too bad. If it's shrinking, more power to ya!
This bill is incomplete compared to the Gross Receipts bill in it's detail - but basically is the same as last year's bill only in your face and on your bill.
They did eliminate the rhetoric-filled criticisms about the Gross Receipts bill - that it taxed food, school tuition, the bible, you name it. But this bill is little better.
The big questions are:
- Who pays sales tax, where the biggest increase of 3% occurs?
It's NOT businesses, as many of their purchases are sales tax free except for what they consume - anything purchased for resale - to the consumer (that's you) isn't taxed.
- OK, so who saves THE MOST from the complete elimination of property taxes?
It's NOT you! Businesses - the people who find those handy loopholes to AVOID paying income taxes and pay little sales and use taxes will not have to pay any property tax on THEIR STORES, THEIR MALLS, THEIR WAL-MARTS...
OK, so by now you get that I don't like this bill - so what's MY idea, right?
Thanks for asking!
The same idea I will say over and over.
I agree in principle with shifting the property tax burden off our senior citizens and all homeowners onto either an increase of our income tax or if necessary, the sales tax.
But I would only propose eliminating property taxes on actual, single primary residences (100% homestead exemption). Perhaps property tax reduction for businesses, but not to the detriment of shifting taxes paid by businesses to individuals.
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