Can States really eliminate the Property Tax?
Eliminating the
property tax Eliminating property taxesA property tax is levied primarily on immovable properties like land and buildings as well as tangible personal property which is movable like vehicles and equipment. Property taxes are a major source of revenue for state and local governments in the U.S. They help fund schools, roads and police services, among other things.
is unprecedented. The challenge for Florida’s legislator is to find a way to replace or do without a
tax. A tax is a mandatory payment collected by local, national, and state governments from individuals and businesses to cover costs of general government goods, services, and activities.
Sales tax is a tax levied by the state on retail sales and services. It should, in theory, apply to all final consumption and have few exemptions. Many governments exempt items like groceries. Broadening the base, by including groceries, would allow rates to be lower. A sales tax should exclude business-to-business transfers that, when taxed cause tax pyramiding.
is its primary source of revenue. Even absent any behavioral responses, Florida’s average combined state-local sales tax rate would have to exceed 14 percent to make up for the loss of the property tax.2025 Property Tax Reform
This is a preview of our full op-ed originally published in The Dispatch.Continue readingStay informed on the tax policies impacting you.
Subscribe to get insights from our trusted experts delivered straight to your inbox.
Subscribe to our Newsletter
