In South Dakota, property tax reform became a hot topic this week when schools brought a suit against the state over education funding. In New Hampshire, where the role of property taxes has been debated for a while now, the State Supreme Court is hearing a case to determine and define the cost of adequate education. The districts bringing the suit argue that statewide property tax is geared to give wealthy towns a break compared to poor towns.

Meanwhile, another state looks to passively let its problem slide by. In response to an executive order by Florida Governor Jeb Bush, a 15-member panel will study property tax reform. Some speculate that the panel was formed for purely political reasons and that during an election year a study of this magnitude means that legislators can put off making politically difficult decisions.

Several states are debating ways to spend budget surpluses.

Arkansas Governor Mike Huckabee has "tax reformation" plans which include putting more money in a rainy day fund and rebating money to taxpayers in the form of a tax credit.

In response to the surplus in Idaho, legislators are debating ways to shift the tax burden from property taxes to regressive sales taxes.

North Carolina legislators are taking notice of the financial hit that mental health services took during the previous recession and both houses have passed budgets that would provide more funds for these services. Of course, if any of these states had a Colorado-style TABOR policy there wouldn't even be a question about how to spend state surpluses because TABOR takes these important budget decisions out of the hands of elected officials.

Counties in New York, as in many states, often provide tax-breaks to businesses through Industrial Development Agencies (IDAs). The IDAs were originally created to stop companies from relocating to states with lower wages and benefits. However, a recent study by the New York Comptroller's office has found that companies receiving tax incentives rarely create the promised number of jobs. In fact, two-thirds of all companies show either stagnant or declining employment numbers. The Comptroller's report has received wide media attention and it seems likely that some reforms will be forthcoming.

For the first time in almost thirty years, Pennsylvania has passed major property-tax cuts. In an unusual display of election year bipartisanship, Democratic Governor Ed Rendell and the Republican-controlled legislature agreed on a series of measures designed to lower property taxes. There are two components to the legislation. First, the number of senior citizens eligible for property-tax rebate checks was nearly doubled. Second, most homeowners will have their property taxes reduced. Lawmakers are planning to pay for the tax cuts with revenue raised by casino gambling, which was recently legalized in Pennsylvania. Some state residents, however, might like to move in a more progressive direction and rely even less on property taxes and more on income taxes.

Things have not worked out so smoothly for property tax reform in Washington State. A Superior Court Judge has ruled Initiative 747 unconstitutional. The 2001 voter-approved initiative capped increases in state and local property taxes at 1 percent. Governor Christine Gregoire has said that if this ruling survives an appeal she will support some type of property tax reform. Early indications are that the Governor and legislators are specifically interested in reform that would benefit the elderly and low-income families.