School property taxes would drop by more than 45% statewide while state sales taxes could go up as much as 1 cent under a tax plan advanced Thursday by the Legislature’s Revenue Committee.
The much-anticipated package would increase state sales tax revenue by potentially raising the rate and by adding taxes to more goods and services. A trigger mechanism based on overall state revenues would determine the size of the rate increase.
The plan would distribute nearly $700 million of sales tax revenue to school districts to drive down residents’ property taxes. It would impose property tax revenue caps on cities, counties and other local governments, while tightening similar caps on schools.
