[IYAS9YAS]

So, does the property tax stay in the city/county in which it is collected? Or does it go into a large pot for the state? If it is the latter, it doesn't differ from sales tax. Again, I think sales tax is more legitimate and moral than property tax. Don't get me wrong, I'll gladly trade the higher property tax for no tax on wages. Even profits are taxed at a lower rate in NH than here in Idaho.

[crv16]

So, does the property tax stay in the city/county in which it is collected? Or does it go into a large pot for the state? If it is the latter, it doesn't differ from sales tax. Again, I think sales tax is more legitimate and moral than property tax. Don't get me wrong, I'll gladly trade the higher property tax for no tax on wages. Even profits are taxed at a lower rate in NH than here in Idaho.

Property taxes, for the most part, are collected and spent locally. A small portion goes to the county.

Up until a few years ago, schools were 90+ percent funded locally. That was until the rats got together and decided to sue the state, due to spending differences between "rich" and "poor" towns. They won with the help of activist state judges (Sound familiar?) So a state wide property tax was instituted, and a handful of "rich" towns really got socked, they had to send some money to the state for redistribution to the "poor" towns. But for the vast majority of towns, they pretty much get back from the state what they put in.

Legislators have come to the conclusion that this has been a failure, because school spending differences still exist. Towns just took the extra money from the state and mainly used it to reduce property taxes, not increase school spending. So over the past few years, the amount collected (and distributed) by the state has been declining significantly. Hopefully it will be scrapped altogether.

Bottom line, almost all money spent locally is collected in the form of property taxes.