Senator Boseman wants to cap the property taxes older residents will have to face. Paul Messino questioned her idea at the JLF Wilmington blog Squall Lines. I’ve included here my additional commentary, but check Paul’s original post here.
One advantage of the property tax is its salience. Taxpayers notice it. Circuit breakers make sure older residents, who are more likely to be voters, do not notice the property tax as much. They also put more burden on renters and other homeowners – forcing them to pay even higher taxes.
Salience is also why 21 counties in the state will have votes on May 6 to raise the land transfer tax or the sales tax. A quarter-cent increase in the sales tax for New Hanover County raises $9 million, equivalent to a 2.6-cent property tax hike. Guess which one people would notice more.
Circuit breakers address the symptom (high taxes) and make the disease (high spending) worse.
