These taxes provide revenues to fund different community services for citizens, businesses, and tourists. Officials that responded to a 1999 fiscal condition survey reported that unfunded street improvement needs, coping with growth, lack of affordable housing, and increasing employee health care costs are major funding problems for local governments. Along with these funding concerns, growth is one of the most important issues for local governments. Dealing with growth means having an infrastructure to support growth. Many localities have gone to voters to retain revenues to help with growth.
Voters often favor retaining revenues because they know what they are getting.
Ms. Gerstenberger stated that many municipalities depend on property taxes as a significant revenue source, especially those without a commercial base. Also, personal property tax revenue makes up an integral part of the property tax base for some local governments. One main concern for local governments is the elimination of the business personal property tax and the resulting impact on local governments. If eliminated, as a result of the Gallagher Amendment, the residential assessment rate would also be lowered. Because of the relationship of residential and non-residential property taxes, it is important that any future study evaluate the Gallagher amendment and business personal property taxes.