Folks with an axe to grind sometimes assert that population growth in certain states (and declines in other states) can be explained by characteristics of state tax systems, and occasionally engage in slipshod efforts to quantify these impacts. This is an easy thing to do poorly, and a hard thing to do correctly: after all, if you want to measure the impact of a tax system on a state's attractiveness to potential residents, it's not enough to simply look at tax rates-- you also have to look at what the state is doing with its tax dollars. Anyone with a school-age child recognizes the importance of quality public schools in making your living decisions.
So, this is a pretty hard thing to measure. But sometimes you can, in fact, look at specific features of a state tax system and say pretty unequivocally that, in fact, this feature makes people less likely to move there.
And, according to the St. Petersburg Times, that's exactly what Florida's property tax system currently does. The "Save our Homes" tax break, which forces first-time homebuyers to pay much higher property taxes, other things equal, than long-time state residents must pay, represents a real barrier against young families seeking to buy their first home in Florida.
This doesn't mean that "Save our Homes" is responsible for the state's slow(er) population growth-- after all, even if it makes the state less attractive for new residents, it makes Florida more attractive for folks who are already there-- and the Times laudably refrains from blaming the property tax system directly for this result. But it's worth reflecting on this question: does Florida really want a tax system that falls most heavily on the young first-time homebuyers who can be the long-term bedrock of the state's population growth?
Because that's what they've got with "Save Our Homes", to say nothing of the state's high reliance on regressive sales taxes.
Check out the complete Census population data here.
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2 comments:
Many of us long-time Floridians would be out on the street by now, if Save Our Homes had failed to pass back in '92.
I am all in favor of helping the poor but the working class-middle class in Florida is being destroyed. Important people like teachers, police officers, nurses and firefighters cannot afford to buy homes in many areas of Florida. The same arguments against Save Our Homes are being raised against another proposal that would help working families in Florida. Local governments benefited from the housing boom and will simply learn to tighten their belts if Amendment 1 is approved. We need to keep Save Our Homes and pass Amendment 1.
I enjoyed my Floridan tours through Hawaiin Airlines, they were amazing.
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