State and local governments scrambling to raise money during the economic crisis caused by the coronavirus pandemic are looking to increased property taxes -- as well as wealth taxes and more -- to fill budget holes.
The proposals come as officials are trying to strike a balance. Historic job losses caused by lockdowns fueled the downturn that's put the squeeze on city and state budgets. Washington sought to offset this with stimulus payments, additional unemployment benefits, business grants and more. Any push to raise taxes too dramatically could hurt the economy even more.
But some officials argue that increases are unavoidable.
Property tax rates in Nashville, Tenn., will be increasing by 34 percent in what Mayor John Cooper described as a “painful but necessary” move that will raise money for the city, which has taken a hit during the pandemic.
Elsewhere, the debate is raging.
This November, Californians will vote on whether to strip decades-old protections from commercial and industrial properties. Since 1978, tax reassessments to the fair market value of California property have only been done when the property is sold or there is new construction. Otherwise, assessments are capped at increases of 2 percent a year. The new measure, if approved, would make exceptions from this for industrial and non-agricultural commercial property, requiring them to be reassessed to fair market value at least every three years.
CORONAVIRUS IN THE US: STATE-BY-STATE BREAKDOWN
In Chicago, Mayor Lori Lightfoot said property tax increases are “on the table” to help address budgetary problems that include a projected shortfall of nearly $700 million that she said could become even greater.
“Those are the last choices and tools that I want to use, but I can’t take any of them off the table," she said.
In Texas, Dallas lawmakers were considering a massive property tax hike of as much as 8 percent but needed the city council to pass a measure al... (Read more)
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