28 May 2012 0 Comments

Liberty Index Part 6: Property Tax Relief and Referendum on Spending and Tax Increases – Act 25 of 2011

In my opinion, the simplest way to reduce property taxes, which are primarily driven by government school spending is to require a referendum on any tax increase or spending increase above a certain limit, for example, increase in number of students. In 2011, the Republican controlled legislature and the Republican Governor passed an improved version of Taxpayer Relief. Intentionally, or unintentionally, did not protect the interest of  The Forgotten Taxpayer because the largest drivers of tax increases were left in as “exemptions”. There is the Union Party and the Taxpayer Party. What party does your representative belong to?

Act 25  of 2011     Jun 30   2011  SB 330  Taxpayer Relief Act – public referendum requirements and installment payment of school real property taxes  TIER 3 FOR LIBERTY – A “yea” vote will add 50 points to Legislator’s or the Governor’s grade and a “nay” vote will subtract 50 points from the grade.

Ten exceptions laid out in the original law, Act 1 of 2005,  allowed districts to ask the state Department of Education — instead of voters — to raise taxes above its index. Legislators removed seven of the 10 exceptions to the voter referendum requirement, leaving pension obligations, special education costs and existing or voter-approved debt as categories under which districts could apply.    

House Fiscal Note

Senate Fiscal Note


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