Massachusetts ranked among the worst states in the nation for property tax competitiveness, according to an assessment released Tuesday by a group that favors tax policies it says will spur economic growth.
The new map released by the nonprofit Tax Foundation ranks states by property tax, which is one component of the group’s 2022 State Business Tax Climate Index. The property tax component assesses state and local taxes on real estate and personal property, net worth, and asset transfers.
“The states that score highest on the property tax component are Indiana, New Mexico, Idaho, Delaware, Nevada, and Ohio,” the foundation said. “The states with the worst scores on this component are Connecticut, Vermont, Illinois, New York, New Hampshire, Massachusetts, New Jersey, and the District of Columbia.”
Along with income and sales taxes, property taxes represent a significant portion of government tax revenue in Massachusetts, and the growth of property taxes is limited by a law passed in 1980. Property taxes are a major source of funding for basic services, such as local education. , public safety and public works.
The Massachusetts Fiscal Alliance, which favors tax rate cuts, said Tuesday that relatively high property taxes in Massachusetts, combined with high inflation and a proposed surtax on household income above $1 million per year, show that Democrats are on the right track to stimulate the state’s economy. in a “brick wall”.
While opponents of the income surtax say it will push affluent taxpayers and small businesses out of state, proponents say the measure will ensure wealthier taxpayers contribute their “fair share” and anticipate that A flood of new income will flow in and be allocated to education and transportation. initiatives.