Property Tax

A new report from The National League of Cities shows that declining property and sales income is impacting city coffers, resulting in layoffs and cuts to construction projects.

Tax caps, assessment limitations, and other property tax relief programs have caused significant damage to the largest source of revenue for ailing cities, says a new book by the Lincoln Institute of Land Policy.

Cities across the country are reconsidering tax abatement plans, in the new belief that cities just can't afford them.

Proposition 13 has long been associated with California's budget woes and "fiscalization of land use" policies. Meant to apply primarily to residential property, commercial property owners have benefited more. 'Split role' could correct the problem.

As commercial vacancies increase, cities are feeling the pain of lower tax revenues.

Long considered the source of California's fiscal and land use woes, Proposition 13, passed by voters in 1978, limits increases in property tax. However, it may prove to be an 'economic stabilizer' during the current housing slump.