CBPP Statement: Statement by Iris Lav, Deputy Director, on Provision in Bipartisan Senate Housing Package Affecting Local Property Taxes

Publication Date: April 2008

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Iris J. Lav

Research Area: Banking and finance

Keywords: City budgets; Tax code; Housing assistance; Economic projections

Type: Report

Abstract:

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.