WASHINGTON, D.C., November 11, 2003—The only revenue source capable of supporting a strong and vibrant local government is the property tax, argues David Brunori in Local Tax Policy: A Federalist Perspective, a new Urban Institute Press book. This tax must be strengthened and revitalized if local governments are to continue to play an important role in American society and not be "weakened to the point of irrelevance."
"Increased demands by citizens for more, and better, public services; the ever-rising costs of providing services; and a plethora of legal and political restrictions on raising tax revenue have left many American local governments in dire fiscal straits," says Brunori, a journalist, educator, and lawyer who specializes in tax and government issues. "These revenue problems are not the result of economic downturn. Rather, the problems stem from structural deficiencies that pose a risk to raising revenue and meeting government service responsibilities far into the future."
In 2002, the U.S. Census Bureau counted more than 87,849 local government units, including 3,034 counties, 19,431 municipalities, 16,506 townships, 13, 522 school districts, and 35,356 special districts. Regardless of type, these local governments require a certain amount of fiscal autonomy to carry out their responsibilities, and property tax is the only source of revenue that provides that autonomy. But public and political pressure have eroded the tax's vitality for decades and there are no viable alternatives to taxing property that can ensure fiscal and political autonomy.
Local Tax Policy: A Federalist Perspective examines America's local tax system, explores the origins of the current fiscal crisis, and evaluates relief proposals. Brunori provides a blueprint for reforming property tax policy, including educating the public about the virtues of the property tax, expanding the property tax base, and addressing school finance problems. It is a clear and thoughtful analysis that will prove invaluable to legislators, public officials, and anyone interested in local issues.
Local Tax Policy: A Federalist Perspective, by David Brunori, is available in paperback from the Urban Institute Press (6" x 9", 162 pages, ISBN 0-87766-717-9, $26.50). Order online or call (202) 261-5687; toll-free 1-877-847-7377.
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