We have posted a new policy brief titled: Levy Swap: Tax Increases, Tax Reductions, Unanswered Questions

Briefly

• Levy swap: court-required state funding to replace local dollars to finance basic k-12 education.
• A state property tax increase to fund a levy swap is proposed by Sen. Dammeier, Rep. Hunter.
• A uniform statewide property tax hike to replace local levies would bring higher taxes in some areas.
• Capital gains tax revenues dedicated to education could be a levy swap funding source.
• Capital gains tax’s volatility makes it a dubious ongoing source for funding education.
• Senators Ranker and Rolfes have capital gains tax proposals that target only the very wealthy.
• Legislature unlikely to pass a capital gains tax, an initiative next year is possible.
• The consequences of increasing state funding to replace local education levies are not clear.