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States That Are Eliminating Property Taxes
What states are thinking about eliminating property taxes? I heard Texas, and Florida are two states that are thinking about totalling abolishing property taxes and cover revenues with sales taxes. How true is this, or is it just a conspiracy theory? I would appreciate a comprehensive overview of the states that will be eliminating abolishing property taxes. Property taxes, high homeowners insurance, and high homeowners association dues are making being a homeowner unaffordable and above and beyond being able to buy a house.
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1 Reply
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As of the latest information, there are some conversations in several states to eliminate or reduce property taxes in some form, but these discussions are part of larger tax reform debates and may never be fully realized. Here’s a summary of where these discussions have taken place:
Texas:
- Texas has been a hotbed for discussing property tax reform.
- There are caps proposed that do not allow for the complete abolition of the property tax.
- As you mentioned, most lean towards shifting the tax burden to other sources, such as sales taxes.
- However, these proposals tend to be very controversial and often encounter a lot of opposition.
Florida:
- Florida has also seen proposals for reducing or eliminating property taxes, especially for homesteaded properties.
- Governors and legislators have been ready to forgo tax revenue as long as the loss can be compensated through higher sales taxes and other revenue sources.
- In any case, these plans are often met with resistance and have not yet been able to abolish property taxes fully.
Illinois:
- The increase in property taxes in Illinois has prompted efforts to reduce the burden of property taxes.
- Discussion has centered on property tax rebates, freezes, and caps, while less attention has been paid to complete elimination.
California:
- The leasing of lands in California has resulted in numerous attempts to alleviate property taxes, which stem from amendments to Proposition 13, a bill that caps property taxes.
- Less common but still a hot topic to debate is finding a solution to abolishing property taxes entirely.
Nevada:
- Nevada has suggested reducing property taxes, particularly on businesses, to stimulate international business investment.
- The redistribution of the tax burden to sales taxes has also been suggested.
Arizona:
- Property tax reduction proposals in Arizona are usually part of more comprehensive tax reform initiatives.
- While ongoing efforts are made to ease access to property ownership, the complete abolition of property taxes is less common.
Oklahoma:
- Several property tax proposals in Oklahoma have focused on granting more favorable terms to senior citizens and lower-income homeowners.
- While there is less discussion around the total abolition of property taxes, there is a trend towards offering tax relief to more targeted groups.
Answering your question concerning conspiracy theories, eliminating property taxes and replacing them with sales taxes does not fall under conspiracy theories; it is a genuine controversy within state legislatures. Still, the proposals and their specifics are too diverse to be politically or economically practical.
Some states actively discuss the possible elimination or reduction of property taxes, but total elimination receives far less support. Replacing them with sales taxes or other revenue sources is part of the conversation. Still, the results tend to differ from one state to another.