A capital gains tax (HB 2967) is currently under consideration in the Legislature.

The questionable constitutionality of the tax makes it a risky source of revenue, whether for the schools as previously proposed or property tax relief now. Moreover, should the legislation somehow clear the high constitutional bar, the volatility of the tax would add a substantial degree of instability to property tax bills. It’s unlikely any property owner would welcome an unpredictable tax bill. Finally, the legislation is unlikely to make any substantial impact on the alleged and misdiagnosed regressivity of the state tax structure.

Read the policy brief here.