Breaking news – the Governors new budget eliminates the car tax relief program. He has replaced the lost revenue with a 1% income tax surcharge. This means that the state will still get the revenue out of us but not in the form of a property tax. I don’t have all of the numbers but it looks like the new tax will collect somewhat more than the car tax did. However, it is hard to tell yet, the car tax reimbursement program was $950 million but that didn’t get everyone’s tax down to zero so it still collected some amount north of that. the new tax looks like it will collect $1.3 billion in the first year.
The new budget also cuts state aid to localities that is dedicated to police funding by 20%. Don’t know the impact on the schools yet but it isn’t likely to be good.
We’re sure to get more info and analysis from VML over the weekend and I’ll post it as it evolves.