On the heels of my long, arcane entries about the Massachusetts property tax, etc., comes this:
In an attempt to solve one of the state’s highest-profile problems – high property taxes – the Florida House of Representatives this week proposed eliminating property taxes in favor of a higher state sales tax.
The plan would leave millions of Floridians without a property tax bill, but would require everyone, including tourists, to pay a statewide sales tax rate of 8.5 percent, the highest in the United States.
This would have two positive outcomes: everyone would share in paying taxes to support their governments, not just those who own homes (or rental buildings); and tourists and visitors would pick up more of the tab for paying the state’s bills.
The negative outcome, of course, is that sales taxes are considered “regressive” – those who are poor or on the lower levels of income end up having to pay the tax, which takes up a higher percentage of their income.
Source: Legislature Seeks to Eliminate Property Tax – By Alex Leary and Aaron Sharockman, St. Petersburg Times, by way of Realtor.org