Governor Ron DeSantis of Florida has an absolutely thrilling idea, one I never imagined I would see unfold in my lifetime. He is putting on the ballot next year a referendum that would abolish or restrict local governments from taxing owner-occupied homes.
That’s right, he wants to get rid of the property tax, saving residents some $3,400 a year and fundamentally disrupting the way schools and local governments are financed.
Texas is considering the same path.
If this really happens, I can easily predict more of a demographic shift out of the Northeast and Northwest to the South and Texas. If this spreads to more states, it would amount to a revolution in public finance.
It’s long overdue. These tax schemes are brutal on home ownership. Indeed, it’s hard to say that you are ever really the owner of your home if you are having to pay rent to the government every year.
It’s especially a problem in an environment when the home valuation goes up every year and so does the tax you owe on the place. You have done nothing but lived there and enjoyed life. It is entirely paid off. Meanwhile, the government keeps coming after you with ever more pressing demands for money.
You cannot really say you are an owner of anything under these conditions. Of course when I hear about how this will save $3,400 on average in Florida, I nearly faint. In my area of the country, this would be pennies. Property taxes in New England can be $20K–40K and that is not unusual.
These taxes fund schools that people don’t use. That’s how public schooling in this country came to be financed. The system of school districts really is a system of tax districts. That’s why they are so heavily enforced. Live on this side of the street instead of that one and your taxes can be completely different. It’s all to fund the public schools, whether you use them or not.
Friends of mine are paying $30K in property taxes plus $70K per kid for private schools for three kids.
If that kind of expenditure shocks and amazes you, you are not alone. I find it all unfathomable but that’s how New England works.
It’s a different world in Texas and Florida. Here you have new experiments in school choice. The plans are different but they generally let the parent use the money that would otherwise go to the public school for private schools, charter schools, or homeschools, either in the form of direct payments or deductions from the tax bill overall.
We might ask how all of this is happening now. The answer traces to the school closures of 2020 and 2021 which dramatically reduced confidence in the public schooling system and hence the way they are financed. If millions of people are homeschooling and millions more are attending newly established private schools, the political pressure for ever-higher property taxes is thereby reduced.
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