The commission is headed by Lt. Gov. Jerry Abramson. Mr. Abramson is the former Mayor of the strongest and most heavily taxed base in the state. By the way, Metro Louisville receives the least amount of return for its tax investment when compared to the rest of the state.
Since Louisville has the “sinking fund” tax on top of other taxes, many businesses (i.e. Amazon, Zappos, etc) have located their businesses just outside the metro area. For major employers like Ford, are offered tax incentives to invest in infrastructure already in place. Thus, staying located in Louisville.
The Courier Journal has reported that the state is in need of roughly $1billion in revenue. They also reported that by repealing the deduction of mortgage interest, the state could raise about $1.1billion. Regardless of whether or not you have a mortgage, chances are this would affect values for all but the highest end properties. If the mortgage interest deduction is removed, the price of ownership rises. The simple law of supply and demand tells us that as a price (cost of ownership) rises, demand falls. Theoretically that means to compensate for the extra taxes; the price of a property should fall to meet the demand, all else being equal.
So, do you think major investors will look favorably upon a state that does not encourage home ownership?
Please let your legislators know if you want to protect your property values and attract commerce to our state by keeping the property tax deduction!