Stopping Cities From Zoning For Sales Taxes

Since 1978's Proposition 13 drastically slashed property taxes, many new California towns, instead of becoming the traditional bedroom communities that once defined suburban life, are developing instead into "Big Box" burbs as they seek high-impact revenue. But now many lawmakers are alarmed that cities are zoning for sales tax riches, neglecting much-needed housing that doesn't provide the revenues needed for the parks and police cruisers. Under a new proposal, cities and counties would trade half their sales taxes to the state every year -- an estimated $2.3 billion this year -- for a larger share of property taxes. The bill's sponsors believe that if cities tie revenue growth to property taxes, they will expand and diversify their tax base with more housing, offices and light industrial buildings."