School Property Taxes - Will elimination bring a tax break?
If you have been keeping up with the news, then I am sure you have heard about Georgia House Speaker Glenn Richardson's plan to eliminate school property taxes as well as taxes on vehicles. According to his plan, schools will be funded by expanding the sales tax to groceries and services. They say that this could be a huge tax break for homeowners. But is it really?
One way to determine if you will be receiving a tax break is to calculate how much money you have spent on groceries and services. Multiply that amount by the sales tax in your area to give you the amount of money that will go to taxes. Compare this number with your school property tax bill and see if you will be saving money. Also, keep in mind that the taxes you pay on food and services can be deducted on your income tax return just like the school property taxes you paid.
The major complaint for local school officials is that the money will be controlled by the state. Therefore, getting funds for paying educators and other bills may be harder.
Taking all this into account, is there really any benefit to homeowners? What do you think?