Local municipalities across the country are considering significant tax hikes to plug coronavirus-induced budget shortfalls.
Some officials are already calling the increases inevitable. (foxnews.com)
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.
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.