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Please share this with your school board members, administrators and teachers:
Will abolishing all three property taxes—school, county and municipal on primary residences hurt or help our school districts, students, teachers, other staff, and taxpayers?
Answer: IT WILL HELP our schools, students, faculty, staff and taxpayers… and here is why. First, the STOP Legislation guarantees 100 percent replacement funding to our school districts for any lost revenue due to abolishment of all property taxes on primary residences. The replacement revenue is established on a base year property assessment when the legislation is enacted, and has an annual cost of living increase written in the proposal. The replacement taxes will come from the STOP plan’s increase in the sales and income taxes…with NO broadening of the sales tax beyond what is currently being taxed. The state’s fiscal experts at the Legislative Budget & Finance Committee studied the STOP plan in 2006. The LBFC study proved the STOP plan will provide total replacement funding to our schools, counties and municipalities in both good and bad economic times. Also, under the STOP plan:
* School districts will continue to receive property taxes from commercial and industrial properties as they do now.
* School districts will continue to receive any local earned income taxes as they do now.
* School districts will continue to receive state and federal subsidies as they now do.
* School districts will get 100% of the base year funding, plus the Cola described above.
Currently, school districts DO NOT receive 100% of their property taxes billed since many taxpayers avail themselves of the early payment discount; some taxpayers are late paying the taxes, some do not pay at all, and on abandoned properties, the schools currently get nothing. Also commissions are paid to the tax collector or collection agency.
Currently if a homeowner wins an appeal after paying their property taxes and has their property assessment and taxes reduced, the school district must absorb the expense of refunding the over-payment and keeping records of the transaction. That all would be eliminated as it relates to primary residences under the STOP plan.
Currently, some school districts hire attorneys to attend assessment appeal hearings to oppose the efforts by taxpayers to get a lower assessment. Those attorneys are paid for by the school district and, of course, the taxpayers. The attorneys’ fees as described here would be eliminated as it relates to all primary residences under the STOP legislation since there would be no hearings.
Students lives and education are disrupted when their parents and the entire family endure the trauma of losing their home to sheriff sale for 'delinquent taxes, or are forced to sell the home to keep from losing it.
Many school districts secure ‘tax anticipation loans’ from banks to pay expenses until property tax revenue arrives. These loans cost taxpayers money in interest paid to the banks. Under the STOP Plan there will be NO NEED for tax anticipation loans, saving the taxpayers thousands of dollars.
Further, the STOP plan will encourage people to remain in their school districts and entice others to move into our school districts. As population and employment increase, tax revenues from earned income taxes and from expanding commercial and industrial development will mean additional revenue for our school districts. That’s good for the schools, good for the students, good for the teachers and good for the taxpayers. Learn more at www.grandoldusa.com or www.undercoverclub.net Hit on the S.T.O.P. Page. Any questions? E-mail Bob Logue, ucblogue@verizon.net
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