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![handle is hein.tera/taxfeaturs0019 and id is 1 raw text is: TAX FOUNDATION'S
MONTHLY TAx FEATURES
C yright 1975 by Tax Foundatio n, Inc, 50 Rorkeeller Plaza, Ne York,A u .o . 10020
Averuqe Statewide Property Taxes-A $46-to-$358 Per Person
A, seen ilOo. iTo[c I ty tlass I aiy greatly in dollar toalIs from state The 1.S. average of 5216 per caita iit i1 l973 compares ts 5118 is
tio state. I lie ilt' sta ilr s ir tiage tkaellell froti n T x Nl tlatall. |tl5. The sltudy )oilts (iiit, hlwever. rist locilitirs inoisi consider
IvC.'s ipronitg editsi Cd i1 Of Faill Figi1i11 r ii ie% i rvernment 1. tilore tllat Jus t is' revenue effects of tlhis highly iltlluilli;l lax.
;isrs. 1 eseaihti gaiitiol also sloIx ins a I' sI ily tlit Getserally regaideild as the la;ihnstiay of local govcrnmelt fii saie.'
ltoir)y taxes call lie significaotly dillerent withii aitas of a stte. it has also rcceis el ie laiel of 'Is disliked lax in polls.
High Tax Rates
May Be Factor
In New Building
Il'olrty lax rates aie high
elsOlih ill slloie lallS isf tile
cOiltlly to illihleltie (sIsIrts-
titi ol Iew loutsil g alnds Isi-si
ties, failitlies, as well as ithe
itslissseItalce antdsl tsslsterlli.-
l l so n if e x istih lilie s, a i 1Vc 'l a x
Fssslidaolrlit slisly says.
Itiher elte Is t Iie tax. whit It
iss.lusesl liaely $51 billiotn
last year, as well is sways its
iItitI it uil lie iit oved, are
dlisctssetl ill the sttldy, PIulo/erlv
Tt\axlia)tliti (ioiserstititl Fi.
h '''a( t [sf (lie pi opery tax Oil
le Ilost all Ilse of latl, a (1llni-
tttllit)'s eompetitiv lie iosition
for tess itiis)l' adl grotihll,
1111 lIte gtl'iisg plresstore fosr
exelltitols ate other reasons
advaed for looking 3t lite tax
tas s isitig iore than ithe
11ailiuslay of local fItii11ce.
The sittisl's assthor, orlt. (.
1.0sel IaI trriss of Colutlthia
Illitersily. Holites that tectaise
alhsisililainl of the tax hit
iiost sltates is a loal t slesrnsi-
shilts', otIll t' t1taliuy of all-
tltisisttalion antl lhe et staslisy
Of asssssiteti vary gileati ).
chievenctci is ill several
lt's ([eilllstlate that assess.
Iti ( atel et stallttle s very
ttit It igher thal at e eleiig
htlelat s ill lost of the cottl.
rv. lie says.
Iti a sliscolssion of o)porttnti-
lies foi inii)tovittg altinistra.
i1ll fo[ le ltax. P'tof. Ilnrliss
sees i stale govertittletst role
lalgee thatl iost lrcseintly per.
fis sl SIlie elfisIs, lie says, coil
be istkded in 5uth1 It atlels is
sesllis gstals a11(1 su:tt{Isr(is. ((il-
slitllg ilistiils to tinrease
elft liveiess, traiilis stalf, anttd
I igading aileals facilities aind
slit ed tires.
Some Property Tax Costs, Effects
Seen Hidden from Homeowners
Despite its being ' local levy other develpileni t i tie coltt.
that finances local Operations, tillitty, are Inot so clear to the
lot all tele elecls sif )toellv taxpayer. %%'here tax rates are
1axitalo arcilt,,ee o illrSad iot all 1s high as fite) are il stille
of Lthe p;yllells' are ini hided Places. Ile iturdell slittls
ill ise honleoller's bill. This l)ttiluligsanli lprlctivee iiil.
leas tse (intllle it f s |lhrl (:. itlellt still hamlp )er eOsniitllslly
Bllrov, exectitive iliretor of progress, lie said.
Tax Follllalioll, I1is. ill le- l{tlineotsunets are aware of
leasig a itest study oi Pro/. rising iproClity taxes. |lst al-
eit, Tixatiottn il (oser iseit[ iIOst c s Ill aiorstlsslls ate largely
Fittstitcs. Isi l ll itile fsrtit sif it es It
'Sillse restilts of llo Ierty hssitiess atd iIblichItility slol.
laxatitlon, slici as tite inlluese etrly hat l it lhe filial atalysis
ott I nushess investolent n ass ste 1paid Ily lhe consntier.
Taxpayers Find Taxes on Taxes
Start Right at Top of Paychecks
055e )l[|l a tilile-illle Ie iays taxed as itteotse tlhe eH-
Iltost allyod) pat in Sue al liovee's share of ithe Social Se.
Security taxes seas $30 a )car- cii, ity tax. One rationale for
there casI't tItlich point ill r- Ihis is that SS retiretleiit hene-
gtilg iclsetier that tax or the fit ill e far greater, becalse Of
FederaI incoine ILtax got first Ite ensiloyer Italching contri-
crack at tre sweekly paycliek. Itt lst, thatn ile esnl)loyce's S5
There's a lot itore [>oit, or tax pain'lltets, andil tte itetteflls
tile, ill the argtmtent ill 1I75, are not taxed.
IItes Tax Foundation, Iite. Most stale gov''erlmllelts ex-
T his year Ile I1axitlti li Sto- te nttl Ite lax.oril-lax sl licesi a
sial Secuirily tax still iie $825 oil slel firther Iy lot allowing Ihe
the first $11,11)0 of Iirote. At deluetiibility ol Federal illcone
that level, the (Itestion of cltich or Socia I Scettrity taxes for stale
lax falls otl which tax starts to Illoie lax ]itptitise.
involve a dottle tax of $13 or
Iltre.
For exatuie, take a tisartried '2-in-1' Property Tax V
inai wcith two chlre earning
exactly $1,4,100. Ilis Federal itt- A new sludy suggests that the
totlte lax, if it sere figured oi ecotsosic effects of fIte litore
te alltIotill left after his $825 thiaI $50 bilions a year intli-
Social Securily tax has bteett vidtals ainl ittlistry tot pay
wilthheld, iould lie $1. ,1 less. its laxes Oil their isrolsertics eats
Ilis Social Seserity lax, if it sest ie tnderstooi tlrough re.
wvere Iasellt ill cOlite reslaill. Cogllitiont of the .'to taxes
ing after tile Federal itcite Iax ins'olhcl.
is icithiehl, wouhl Ite $93} less. Professor G. l.oscll Ilarriss
The Federal goverliltielit, i)[ says the vital ecotottlie dis-
collise, ioessI't see thiIgs sItlite lislctiolt ill property laxationl
th1t way ill ip yiing iot Ilaxes is iat he tax is onse tax oi
to the same Itcolle. It has al. land and antother our stiatt.ttaile
Tax Overloads Stayed
By 'Circuit Breakers'
Wilh ropertly taxes r easiitig
te w i e o r l o l a ls a iuii ll y , aill
states now Iase sorile tfrIll of
properly lax relief for Ite elder-
ly, Tax Fotndatiots, lic. stoles.
A growing stitltoler (if stales do
it Ihrough ircil breaker
)roglaills which ill tillist cases
are groundiled oil age attd itI.
collie levels.
'hIlegeneral tetill for the pro.
grais derives frolsi the ee( tita
circuit breakers that prevent
overliading of esIliliiiselot jost
as tile progralsss attempljit 1o pro-
lect smttall icostes froiltl lax
overload.
Wiosint pionceled with a
circ.itibreaker progras l ht96-
wilth Milllesota (196117) and Ver.
ntis01s (169) other early statles.
By early 197.1, 22 states hasd
adoptel tircuit.lreaker laws. Itn
tite retainig stales, property
tax relief is gralllel tlrolught a
tis iely of ttliher lItns.
Tax Foidatisats'S liess- svndy,
l'rerfty Tixatlio i, Goieris.
inrsltlt Financite, says tise progralsS
casln do tore Ihai ellitlstate
resuills of propserly laxalion
wheltih are widely (ililelileil Oil
eilily glOillslS. The pInIhlie iliay
feel fice tIll tOerllle alnd1 to
stilife [he lax sti0te hilly if the
hasis for a nIajor rrilicisint has
beel resloved.
iew Explains Effects
capital such as buililgs, nut-
chinery and inventories.
A 'high' tax on5 bldinitgs
and mlachiery wvill raise costs
to the user and restrict suIlply.
Getting the sate dollars of
reelltse frol latld swill stit ce.
dure tIle sipply, Professor flar.
riss slates.
The obseivationss are in Tax
Fotntlation's ne % hanllook,
Ptriperly Taxation ill Covert.
tsient FSitance.
Property Tax
Take Doubles
In 8 Years
Prlperty lax toilectliolH, ill
197.1 wtill Itstal close its $51 hil-
lioll, lax Fts io lhaioi. lItc ('Iti
Ilates, Illsre Iltusi sii¢c the l11a-
tiolsIsiwle total Only eiglt years
ago.
Revente froll she lax. Ilossitly
for lical gostrnisileils, has list'll
each car deshile ttlioliie
etiaissIs or lliersy lax relief
alll ellorts by both lIlt' steles
alsl Federal govelllllel it)
greatly exslll let Cisc sihas lug
I:I ease jscselldiisg plessilies oil
the lax.
Plrolerty taxes, iswhislis iiy
consileralbly witil as well as
aisti stls, as er'ageil $11 IRpe
resideint 5alioiall' its listal t'ar
1OI15 sc.'ell solles iots tloasllil
$23.9 billion. lit IFY 1173 ihe
pert alila aseiage was S2161 alndl
ile Iotall. $ 17.2 illisit.
Massachusetts High
Hlighest iroerly taxes pe r
rapila iii 197:1 were lit M; sa
clsett. S358; CtOitil'slivlll,
$35:3; California aid Nyui Jer-
sey, $:318; and Nes' 'ork. $3211.
Lowest states iec Alaasiea,
$6I; Ketttck)', 578: Atkatisas
and Losisiana. S711; aii4 West
Virginia, S83.
Tax Foindaliini oat itisl IC.
leased a new handhok, I'is/s.
eity Tavatiox l in (;orlint ri
Filsrs'. gi5ing al ti veri'w O
the Ilcas1y aspets (if tile tax. ', ie
sitaillsta' of Iosal gsss erssltsse
rillancc.
'11e atstlsr. Iloi. C . .owell
I larriss of Cotlmbia, TF eo).
Illilile COslaItaill. sa)s that lit-
ally at least three 111ilits Of gistn.
erslnleslt, andil sOlletillis o1{1{.
tax tile satire froperty. .As esi.
taled 66l',0001ll selarate nlits of
.lolverllllelit impo~lse the [a%,
with conslderalev dllfferei
stttlaris as iell as ralt's.
Folhtwing are lie aersage
slate figures sis plois'rly taxes
1) raI fit{ from lle F'{11ililda.
t 11n s forthICilllIg I 8t rs ll
ofr Pai arsd Figisies 055 nites ,.
merit Fittiirr:
FIlial Year Fliacl Year
U.S. Average 216 $1
Alabama 46 30
Alaska 126 54
Allons. 211 127
Arkanisas 79 45
CiIorla 348 197
Colordo 218 144
Connecicut 313 152
Delaware 104 17
Florida 143 57
Georgia 126 58
Hawaii 127 58
Idaho 152 It1
Illinois 244 134
Indlana 236 126
lowa 232 155
Kansas 245 IS
Kentucky 24 47
Lousiana 79 49
Maine 223 116
Maryland 196 107
Masslchuselts 358 174
Michigan 234 129
Mlnnesola 221 118
M:ssssipplI s 46
MissourI 163 89
Montlan 267 113
Nebraska 237 156
Nevada 236 127
New Hampshire 259 142
taW Jersey 346 173
New MeXICo 91 5
New York 320 159
NotlhCarolna t00 50
North Dakota 183 123
Ohio ISA 117
Oklahoma 104 67
Oregon 215 130
Pennsylvania 153 83
Rhode Isiand 218 121
South ClolIna 84 37
South Dakota 256 140
Tennessee 10S 57
Texas 161 93
Utah 146 110
Vermont 236 II5
Virginia 130 67
Washintgon 196 95
West Virginia 62 32
Wisconsin 272 140
Wyoming 247 155
Vill. Colutbia 191 98
January 1975
Vol. 19, No. 1](ViewImageLocal?handle=hein.tera/taxfeaturs0019&div=1&collection=&method=preview&ext=.png&size=3)