CBPP Statement: Statement by Iris Lav, Deputy Director, on Provision in Bipartisan Senate Housing Package Affecting Local Property Taxes
Publication Date: April 2008
Author(s): Iris J. Lav
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: City budgets; Tax code; Housing assistance; Economic projections
While the Senate housing package would establish a new property tax deduction for non-itemizers, a little-noticed provision of the bill would deny the new deduction to any resident of a locality that raises its property tax rate between April 2 and next January 1. By preventing localities from raising tax rates to help compensate for shrinking property tax revenues, the provision could force many localities to cut police, schools, and other vital public services.