Would you favor an increased sales tax in order to reduce property taxes?
Most local governments in the United States impose a property tax as a principal source of revenue. This tax may be imposed on real estate or personal property. The tax is nearly always computed as the fair market value of the property times an assessment ratio times a tax rate. Values are determined by local officials, and may be disputed by property owners. A primary advantage of a property tax over a sales tax or income tax is that the revenue always equals the tax levy, unlike the other taxes, which can result in shortfalls producing budget deficits. The property tax always produces the required revenue for municipalities' tax levies. Property owners, especially seniors, believe the tax is unfair and does not represent the owner's ability to pay.
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I don't favor simply increasing the sales tax to lower property taxes because I feel it's often not an equitable solution. I think we should reform property taxes so they're lower for average homeowners, which would help with housing affordability, while also making them higher for individuals or entities that own vast amounts of property. I see this as one part of creating an overall tax system that is truly fair and simplified for everyone.
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