With Halloween and Thanksgiving just around the corner, it's no surprise that state lawmakers are in the holiday spirit. But Wyoming policymakers may have taken the holiday mood one step too far with a property tax holiday proposal. Governor Freudenthal is proposing a one year property tax holiday that would reduce property tax rates by 12 mils. Apparently the state doesn't need to generate property tax revenue next year because surpluses are expected. This proposal leaves low- and middle-income taxpayers with little to celebrate because the tax cuts aren't targeted to those with the least ability to pay. A better policy alternative would be to expand the state's current property tax relief programs.

This November, South Dakotans will vote on the latest too-good-to-be-true policy solution... Amendment D, a constitutional amendment that would change how property is assessed for tax purposes. In most states a property's taxable value depends on what its really worth. Amendment D would confuse matters by creating two different property tax systems. Property that is sold would be assessed based on its value at the time of the sale. Property that does not change hands would be assessed by rolling back its value to 2003 levels and then increasing growth by an arbitrary 3% or the rate of inflation.

The ideas driving Amendment D are nothing new. In fact, almost identical laws have passed in New Mexico, Florida and California. These laws created a situation where one home located next to an identical home could be assessed at twice the value of the adjacent home, merely because it was sold more recently. As this excellent letter to the editor points out, South Dakota currently has several measures in place to support homeowners when property taxes are due. An expansion of the current homestead credit or a property tax circuit breaker would help those most in need of assistance.

Beer drinkers in Vermont have it easy. When Vermonters buy a bottle of wine, they pay the state's sales tax ... but if they buy a six-pack of beer it's exempt. But thanks to new legislation, starting in January the state's sales tax will apply to beer as well ... ensuring that all alcoholic beverages are taxed the same way. Vermont is cleaning up its sales tax laws as part of its membership in the Streamlined Sales Tax Project, a coalition of state government officials seeking to close what's arguably the most threatening sales tax loophole in the nation ... the inability of states to tax Internet-based sales. An ITEP policy brief explains why this sort of sales tax simplification is a necessary step as the state seeks to tax all retail sales fairly in the 21st century.

This week Ohio Gubernatorial candidate Ken Blackwell unveiled a plan to introduce a flat rate income tax. So far Blackwell and his staff are speaking only in vague terms about the proposal. However, a new Policy Matters Ohio report delves into the harmful repercussions of a similar plan. As presented, this fiscally irresponsible proposal would raise taxes on the middle class and cut taxes on the wealthiest Ohioans while simultaneously creating a huge budget hole.

For advocates seeking equitable funding of K-12 education, state court decisions have been crucial for over a quarter century. From Arkansas to New York, many states have improved their education funding systems, in part, because state supreme courts have told them they have to. (Unlike the US Constitution, virtually every state constitution includes language guaranteeing a basic education to its residents ... and many states have failed to comply with this basic guarantee.) In the states, as in Washington DC, this is exactly what courts are supposed to do: rap lawmakers on the knuckles when they pass laws that violate fundamental rights enshrined in the constitution.

But some New Hampshire lawmakers don't see it that way. Senate President Ted Gatsas has introduced a constitutional amendment that would actually prevent state courts from determining whether New Hampshire is living up to its constitutional responsibility to adequately fund schools. In a series of court decisions collectively known as the Claremont cases, New Hampshire courts have ruled that the state does have a constitutional obligation to adequately fund schools ... and that the state is not currently doing so. Four Republican ex-governors got together last week to voice their support for "return[ing] control of education policy to the legislature."

The cause of the latest ruckus? A September court decision ruling that the state must take steps to determine what an "adequate" education really means. If the legislature fails to act by next summer, the court has said it may step in. Constitutions are generally thought of as sets of rules that legislators cannot violate, in order to protect citizens, so it's peculiar that the interpretation of these rules would be given to the legislators. No word yet on whether the state legislature would be in charge of safeguarding all other fundamental rights in the Granite State.

Vermont is one of a growing number of states that have moved away from a purely local property tax toward a statewide tax that shares revenue between poor and wealthy taxing districts. This is a good move for those seeking to make the property tax a more equitable funding source. But property taxes are as unpopular in Vermont as in many other states, and a number of anti-tax lawmakers are proposing to repeal the statewide tax-- with no replacement funding source. The Vermont League of Cities, taking a slightly more responsible tack, announced this week that it also favors repeal of the statewide property tax, but endorses replacing at least some of the lost revenue with an increase in the personal income tax. Meanwhile, the property tax debate has spilled over into the gubernatorial election, with incumbent Governor Jim Douglas proposing a cap on local budget growth. A helpful overview of the Vermont property tax debate is here.