The state could raise taxes by as much as $1.75 billion to help deal with its gargantuan budget hole.
That includes potential temporary sales tax increases to the tune of $1.5 billion and delaying the permanent repeal of Arizona’s $250 million equalization rate. Real estate groups and chambers of commerce want that property tax repealed, but that could be put off for two or three years because of the budget deficit.
Tim Lawless, state president of the National Association of Industrial & Office Properties, wants the equalization rate repealed, but is open to delaying it considering the state’s financial crunch.
“We’re certainly open to this as a fallback,” Lawless said. Even if the repeal were delayed, it would raise the property tax bills of businesses and homeowners for a couple of years, he said.
“It still would be a short-term tax increase,” he said.
The state faces a $4.5 billion budget deficit for the current and next fiscal years, and lawmakers are looking at spending cuts as well as tax options to deal with the crisis.
The equalization rate was repealed temporarily in 2005 and is slated to be reinstated at the end of this year without further action. Its permanent erasure has the backing of the Arizona Chamber of Commerce & Industry and other business and real estate organizations. The tax is assessed on both residential and commercial properties.
Advocates of a permanent repeal say the return of the equalization rate would amount to a significant property tax increase on businesses and homeowners, and would hurt the already strained economy.
Coke — Greater Fool – The Troubled Future of Real Estate – If you are making a buck for something you do more than once a year you could be faced with taxes (RC treats it like a business). Espeacially big items like houses. They can even tax you on the part of the land over 1/2 Arc. or so (you have …. Escalating energy costs and increasing property taxes, combined with rising real estate values, are creating cash-poor, house-rich retirees. Although governments could put their resources into lowering energy and tax burdens for …
Rendell suggests raising Pennsylvania income tax – PennLive.com – Make no mistake- Rendell and others like him want everyone on welfare. It guarantees permanent power for them. If people can no longer be self sufficient, they have no choice but to depend on government for everything which not only feeds thier power hungry egos but it means they ….. ELIMINATE ALL PERSONAL PROPERTY TAX GO TO A 9 % SALES TAXE WITH LIMITTED EXCEPTIONS.1 car per tax paying adult, primary residence, and most food (EXCLUDE ICE CREAM, SODA, CHIPS, CANDY ETC) …
A Fisherman’s Observations on Laguna Beach’s Vote for a State … – 3) If the City wants to establish a reputation as a leader in marine conservation, it should not be so transparently motivated by money: it is not a given that property values would rise, it should extend the sewer, and it should …. It is a mistake to think that it exposes them for anything except the information that people are willing to document, publish, and publicize. If people don’t hear about it at all, well … if a tree falls in a forest and no one hears it, …
The tax increases would take the form of statewide referendums asking voters for temporary increases for two or three years. The state sales tax also could be expanded to food, which currently is not taxed at the state level.
In addition, the state might eliminate a host of tax exemptions for service providers and professional service firms and raise the state sales tax rate from 5.6 percent to 6.6 percent.
The sales tax increase could raise as much as $1 billion a year, and expanding the sales tax base to include food and other exempted sales could bring in $500 million.
A plan forwarded by the Children’s Action Alliance seeks to extend the state sales tax to services offered by hairdressers, nail salons, auto and home repair providers, pet groomers, trade schools and others. The alliance also wants the equalization rate to be reinstated, arguing that children’s health, education and welfare programs will be cut without increased revenue.
Those opposed to increasing sales and other taxes to solve the budget deficit say doing so during a recession will further strap consumers and business.
“Raising taxes in a down economy is a huge mistake,” said Sean Noble, CEO of Noble Associates, a Phoenix-based political consulting firm.
RedBankGreen » COUNCIL OK’S TAX APPEALS ‘UNDER DURESS’ – You all made a big mistake. Posted by: JM on May 12, 2009 at 3:04 pm | Permalink. The abstainers were ‘hired’ to make decisions and vote. Recusals are for legitimate cause such as conflicts of interest but abstentions are a cop-out. Posted by: Observer on May 12, 2009 at 3:46 pm | Permalink …. And three, they need to stop raising the property taxes for several years to make it a more affordable place to live which is the reason NJ keeps losing residents to other states. …
bubbleinfo.com » Blog Archive » Five Stages of Buyers’ Grief – Instead of raising taxes to lower the deficit, the Fed would monetize it by printing money to buy Treasurys. That would scare Chinese and other foreign investors we rely on to buy our bonds and finance our deficits. They might resort to panic selling. … I don’t think the state matters that much in the big scheme of things. Demoralizing, yes, but they’re going to raid local municipalities for property taxes. Just like they did in previous recessions. …
Money Matters: Bankrupt Mortgage Companies Bouncing Property Tax … – Elaine Meinel Supkis More and more homeowners are in trouble because bankrupt mortgage dealers and holders are going bankrupt and not paying property taxes or are using bad checks to pay this! … Ohhhhhh……far from making me feel good, this news is hair raising. Apple made the mistake of discounting their phones too quickly and ran into the honest ire of earlier purchasers! Their profit margin has been hammered by the need to refund a lot of money. …
“Government shouldn’t rely on taxpayers, who are also struggling, to fix the problem when government should be tightening its belt,” he said. “Families don’t have someone to bail them out, so they shouldn’t be expected to bail out government that has been on a spending binge.”
There still is support in the Arizona Legislature to repeal the $250 million equalization rate, Lawless said. Those familiar with early budget haggling say there could be plenty of trade-offs as the state looks to balance its hemorrhaging books, including business interests agreeing to accept the sales tax increases in exchange for a permanent repeal of the equalization rate.
Oregon bills raising business, personal taxes win final approval … – So, the platitudes about only the rich paying taxes is a big LIE. I’m for a smarter government and a more equitable tax structure here in Oregon but I don’t think that day is coming any time soon because of the uninformed people and their weird views on … Secondly, if the state would severely limit the State Income tax – say a flat 5%, and offer a reduction in property taxes, you could implement a sales tax and get revenue off of your second-largest industry, tourism. …
Tommy Devine’s Cosmos Report: Instant Karma – After all that Springfield had been put through by the Albano’s and the Keoughs and the Phillips and the sleazes and incompetents of every stripe, they didn’t deserve a tax hike on top of it. I thought it was mean of the Control ….. Big mistake – almost as big a mistake as sending him a picture of me in the nude. It was a very PG rated nude picture, you could’ve run it in a family newspaper, but it was none the less obvious that I was naked. I did this insane thing as a …
London Ontario Real Estate Diagnosis: Ozzie Jurock: Why I Will … – Even if you could barely hear thunder and see lightning, it was almost impossible to make a big enough mistake. If you paid too much, it only meant that you had bought a little too soon. The clock and the calendar made you into a …. Mr. Jurock ignores the costs of carrying the asset – chiefly property taxes and maintenance and financing costs in the event they were incurred. Consider that the present value of $895000 on a $13105 investment 48 years ago is just a shade …
Myths and mistakes investors often make – Rather, the boost to household discretionary income from lower mortgage bills (as interest rates fall) and tax cuts or stimulus payments to households during recessions eventually offset the fear of unemployment for the bulk of people still employed. As a result they eventually … This is generally true over the long term and at various points in the economic cycle, but at cyclical extremes it is usually very wrong and constitutes another big mistake investors make. …
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