Friday, September 21, 2007

Property Taxes: On Rate Caps

The poll that is currently on the sidebar asks.

"The amount of revenue that the county is allowed to collect is limited by law, but municipalities are not limited. Should the tax revenue that cities are allowed to collect be limited by statute?"
On a closer inspection, I can't figure where I got this idea that municipalities have no cap on their revenue. I was sure that I'd read it in an article, but I can't find the source. I got five responses in favor of capping revenue that flows into city coffers, but my question is not factually based so those are useless results.

The fact is that there is a rate cap on certain things and not on others. For example, flood control has no limit, on the county level. The recreation(???) rate on the city level also has no cap.

Most taxing entities have caps in the code that limit the rate at which we can be taxed. Which ones do not?

More information is available at the state website.(pdf)