Surprise, surprise…another version of the Speaker’s tax proposal, now called the Property Tax Reform Amendment (SR 796 and HB 979), was presented to members of the State House this morning. You can view the details of it here.
This proposal seems decent at first glance, though there is nothing here that limits state spending which as much of a concern as local spending. Also, there is no guarantee that the legislature won’t raise taxes in another area to make up for the billion dollar tax cut with the elimination of the car ad valorem tax, and they have given us no indication that they are serious about cutting spending.
Anyway, here is what the amendment does, and I’m pulling most of this straight from the fact sheet:
- eliminates all property taxes (ad valorem) on personal vehicles by July 1, 2010
- freezes all tax assessed value on all real property as of 2008 values and limits how much they grow
- caps revenue growth of a local government at 2008 amount plus inflation, plus new contruction
- allows local governments to put a question on the ballot if they wish to spend above rate of inflation
- funds statewide trauma care at $10 per vehicle
- local school board have local legislation submitted through the General Assembly and submit a ballot question to voters in order to spend above 20 mill limit
The exemptions on the 175 services are still in place in this new proposal.
[UPDATE] The proposal has gained the approval of Grover Norquist and Americans for Tax Reform and the Americans for Prosperity, who sent out an action alert this afternoon urging their members to contact their representative to support the bill.
[UPDATE II] Here is the letter sent to legislators from Americans for Tax Reform.