The state Taxation and Budget Reform Commission will ask voters in November to cut property taxes by roughly one-fourth and make up the revenue with a higher sales tax.
The proposal, passed 21-4 in the powerful panel Monday, would eliminate the entire, $8 billion-plus portion of property taxes lawmakers force school districts to impose, called the Required Local Effort, by 2010.
To offset the tax loss to schools, the Legislature would have to pick and choose between repealing sales tax exemptions, spending cuts, enacting a one-cent sales tax increase, or through general revenue growth once the economy rebounds.
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