The problem is that if you scrap property taxes, it has to come from somewhere else. And in a lot of ways, it becomes more visible. And people will revolt - especially renters. :)
One reason I moved to KY is that my annual property taxes on a new home, a big barn, and 32 acres with two streams is less than one month’s car payment. :)
Imagine a 30% sales tax.
Imagine a 30% sales tax? Works for me if it would bring relief to the millions of CA homeowners. And it also work for me because I’m very frugal and don’t buy much. I’m good with it as long as the millions of tourist who come to CA daily pay the same, I have no problem with that.
When I was with the local taxpayers alliance in the surburbs, I met widows who had their paid-for homes taken away for tax purposes. A typical story would involve a home that was bought 30+ years ago for 20 thousand dollars or less, yet was now worth 100 to 300 thousand, with the corresponding tax bill at 6000 and up. These women lived on tiny pensions and social security and could not pay 500 per month just for property taxes.
An Income tax is a tax on income coming in, so you can afford it. You can avoid or minimize sales tax by watching your spending, but you can't avoid or minimize property tax, and don't say the solution is pulling old ladies out of their homes.
I just paid off a tax lien on a property. For $762 I bought a semi run down house and an acre of cleared land. In 3 years I can get clean title.
But why should renters get a free pass? Why should I as a property owner pay for the education of the masses? A wheel tax or sales tax is the way to get everyone to pay into the coffers.
Kentucky is one of the worst states in the south for taxes, they tax everything coming and going and still can’t meet their budgets easily. And Tennessee a no income tax state has nice surpluses year in and year out.
I live on the border with TN and many Kentucky residents will buy a lot on the lakes in TN and tag their vehicles over there to avoid the odious property tax Kentucky places annually on their vehicles.