CCP 11-12-1996 - Laserfiche WebLink

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I . ~. IMPROVING FISCAL FUTURES I FF-l. Property Tax Reform 1 I 2 Issue: Changing economic and political circumstances have created the motivation to I 3 revisit our property tax system. For example, reductions in state aid and the proliferation of 4 unfunded mandates have increased local governments' reliance upon property taxes to fund I 5 basic services, making the property tax the largest source of state and local government I 6 revenue, In addition, changes to the property tax laws over the past 25 years have created a I 7 very complex system which frustrates public officials and citizens alike. 8 Response: As the legislature addresses property tax reform, it must provide local I 9 officials with the ability to fund the services their citizens demand. Local governments Ie 10 must be a partner with the state in developing changes to the property tax system, 11 Specifically, the League supports: I 12 . Reducing the property tax burden for all classes of property by increasing the state I 13 share of school funding. Any increase in the state share of school funding must I 14 guarantee a permanent reduction in the local property tax burden. The League 15 supports paying for the increased state costs through income and sales taxes. I 16 . Modification to property tax class rates where the property tax burden has created a I 17 demonstrated problem for a class of property and where class rate reduction is an 18 appropriate policy response. Class rate changes should be phased in over several I 19 years and must not result in shifts of burden from one class to another. I 20 . Class rate simplification. The state should consider reducing the number of property ~ 21 classifications to make the system more easily understandable. The legislature must I 1997 City Policies 3 :i