County and local government officials have unveiled a plan which would allow them to provide meaningful property tax reduction for residents, as well as relief from the burden of tax-exempt property, through an optional county sales tax.

The proposal gives counties the option of levying a 1% sales tax on the same goods and services subject to the state sales tax. A majority of the proceeds would be used for property tax relief, to offset nuisance taxes and to support projects involving multiple municipalities.

Under the proposal, 50% of the sales tax proceeds would be returned to the participating county, 40% would be distributed to qualifying municipalities, and 10% would be allocated to a Municipal Collaborative Efforts Fund. The county would be required to use at least 60% of its share for property tax relief and to eliminate nuisance taxes. Municipalities would have to use at least 60% of their share for property tax relief and/or to offset revenue losses from tax-exempt property.

For more information about this proposal:

April 20 Press Release - Optional County Sales Tax Proposal Unveiling

Key Facts - Optional County Sales Tax

Optional County Sales Tax Property Tax Reductions by County

Optional County Sales Tax Talking Points