Discussion of Property Tax at NCSL's 2006 Annual Meeting

NCSL's Annual Meeting in Nashville featured several timely and fascinating sessions on state fiscal matters. "The Future of State Budgets" featured a presentation by Bill Fox on the revenue challenges facing states, while John Petersen focused on state spending pressures.

"The State Economic Outlook" featured David Wyss, chief economist at Standard & Poor's, who gave the latest state and national economic outlook. Colorado Representative Bernie Buescher provided details on Colorado's economy and the effects from the Taxpayer Bill of Rights (TABOR).

A new swap of property taxes for sales taxes in South Carolina, and replacement of property tax revenue with tobacco and business taxes in Texas, will become law in 2006 after actions by the state legislatures.

In South Carolina, property taxes designated for school operating expenses will be eliminated and replaced in 2007 with a 1 percent increase in the state sales tax rate, which is now 5 percent. The governor has signaled he will sign it into law. More information on the South Carolina tax swap.

In Texas, in a special session, the Legislature approved a school finance reform and property tax relief package. Property taxes will be reduced and a new $1 per pack cigarette tax, plus a reformed business tax, will help to finance the education and property tax relief package. More information on the Texas package, H.B. 1 through H.B. 5,.

See also a presentation from the 2007 Annual Meeting, Don't Tread on Me, by South Carolina Rep. Thad Viers.

Posted 25 August 2006; updated 12 October 2007.
E-mail statefiscal-info@ncsl.org for more information.
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