Texas legislators submit bill to eliminate property tax and replace it with value-based excise tax

[Elderberry]

Texas News Today by carolbull 4/5/2021

Texas legislators submit bill to eliminate property tax and replace it with value-based excise tax

Texas property tax burden worst At the national level — and its strength is at the local level. A bill submitted to the State Capitol will completely abolish its use in Texas.

House Bill (HB) 3770 The purpose is to replace the ad valorem tax submitted by Congressman James White (R-Hillister) with VAT, commonly known as “VAT”.

VAT is VAT at each stage of the product supply chain. When a product is changed from producer to packager or from packager to delivery, tax is levied on the transaction.

In VAT, which is a type of consumption tax, unlike consumption tax, consumption tax is mainly borne by the final consumer, while consumption tax is distributed throughout the product journey from point A to point B.

Sales tax is often criticized for shifting the tax burden towards poor individuals rather than the top-heavy property tax system that focuses on property owners (usually high-income people). However, property tax is paid by those who do not own the property through the rent paid to the landlord.

More: https://texasnewstoday.com/texas-legislators-submit-bill-to-eliminate-property-tax-and-replace-it-with-value-based-excise-tax/208605/

[MajorClay]

Hmmmm

[Victoria33]

@Elderberry

That will not be good for me since the county where I have property, freezes the amount of property tax after the owner reaches a certain age.  I have reached that age, so my property tax never goes up.

This bill will remove that amount, and charge tax on goods bought, so everything bought goes up from where it is now and once this is in effect, the legislature can up the amount of tax charged on goods whenever they want.

Let's go back some years:  When I was a child, my father had a fit when a cup of coffee went up from 5 cents to 10 cents.

[thackney]

So how does the Ag Exemption work?

[Bigun]

In VAT, which is a type of consumption tax, unlike sales tax which is mainly borne by the final consumer, while VAT is distributed throughout the product journey from point A to point B.

Whoever wrote that is economically illiterate!  ALL business taxes are ultimately born by consumers of the goods and services produced. The difference between a sales tax and a VAT is that the sales tax is completely visible to those consumers and a VAT is not.

[Elderberry]

So how does the Ag Exemption work?

It goes away and the cost of your consumables goes up.

[corbe]

   I agree @Bigun VAT is a terrible idea. Currently Property Taxes are very discriminatory against Families that Home-School or, like me, have never had kids.

[Elderberry]

@Elderberry

That will not be good for me since the county where I have property, freezes the amount of property tax after the owner reaches a certain age.  I have reached that age, so my property tax never goes up.

This bill will remove that amount, and charge tax on goods bought, so everything bought goes up from where it is now and once this is in effect, the legislature can up the amount of tax charged on goods whenever they want.

Let's go back some years:  When I was a child, my father had a fit when a cup of coffee went up from 5 cents to 10 cents.

I believe the over 65 tax ceiling certificate is Texas wide.

[GrouchoTex]

Whoever wrote that is economically illiterate!  ALL business taxes are ultimately born by consumers of the goods and services produced. The difference between a sales tax and a VAT is that the sales tax is completely visible to those consumers and a VAT is not.

Exactly.

[Bigun]

   I agree @Bigun VAT is a terrible idea. Currently Property Taxes are very discriminatory against Families that Home-School or, like me, have never had kids.

Property taxes are a holdover from a time when you had to prove you were a property owner in order to vote.  The people who did the electing got the bills for what they elected.  Now everyone gets to vote and the PROPERTY OWNERS still get the bills. THAT is not good! 

If Texas were to simply expand the base of the current sales tax to include services it could do away with property taxes entirely and LOWER the tax rate to about 4.5% and still raise the same amount of money.

@corbe