The way property taxes are levied now, based on fast-rising home values, is “unsustainable” for most homeowners, he said. Property taxes are not collected by state government, but they pay for most local services, from police to teachers. Email newsletter signupBut sales tax revenue is currently a larger revenue stream. Sales taxes are also less reliable than property taxes, especially during a recession. It means shifting sales tax from other purposes like capital and general property tax relief across the board,” he said.