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Posted by David Sherman on Saturday, May 16, 2009 at 18:05:48 :
In Reply to: Re: the other big loosers in this posted by MikeyStone, idaho on Saturday, May 16, 2009 at 10:31:34 :
The sales tax doesn't necessarily go to the local government. I don't know about other states, but in Washington it's something like 7% for the state and 2% for the locals, and in Idaho it all goes to the state. In most jurisdictions, property taxes are the main local source of revenue, and they don't fluctuate as much as other taxes. Obviously a closed dealership is eventually going to get its property taxes reduced if no other business goes in there, but for the most part, a drop in sales tax is a state problem. It's hurting California badly, partly because they have come to depend a lot more on sales tax and income tax (which is also way down) and less on property tax, thanks to prop 13.
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