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1 Jared Walczak, There's No Good Way to Pay for Property Tax Repeal 1 (2025)

handle is hein.taxfoundation/thrngdwy0001 and id is 1 raw text is: TAX FOUNDATION There's No Good Way to Pay for Property Tax Repeal Jared Walczak Vice President of State Projects Oct. 2025 Key Findings * Property taxes currently generate 70 percent of all local tax revenue, some or all of which would have to be replaced with other taxes under property tax repeal. * Replacing the property tax with newly granted local taxing authority is exceedingly difficult, because local sales and income tax bases vary widely across jurisdictions; there may, for instance, be no feasi- ble sales tax rate by which an agricultural county or bedroom community could replace its property tax revenue. * Backfilling forgone local property tax revenue through new state taxes is difficult because it dramati- cally shifts overall tax burdens, undermines local accountability, and cannot easily adjust for changing population mixes. * All revenue alternatives are less conducive to economic growth than the existing property tax regime, but some transfer regimes are sharply degrowth. * Taxpayers should have the opportunity to evaluate plans for replacing property tax revenue, not just promises of repeal without trade-offs. The Tax Foundation is the worlds leading nonpartisan tax policy 501 (c)(3) nonprofit. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. TAX FOUNDATION 1325 G STREET, NW, SUITE 950, WASHINGTON, DC 20005 202-464-6200 1 taxfoundation.org