Best Practices in Revenue Diversification for Local Governments (Article 2 of 2)

December 27, 2007 | PSD Research

Introduction Many local governments today face the challenge of fiscal strain. This is largely due to the unabated property tax revolt which began in the late 1970’s as well as the impact of reduced revenue sharing from state or provincial and federal governments in recent decades. Municipalities are searching for an answer to the question of how to finance government services without raising property tax rates. In the first article of this two part series we looked at best practices in expanding the use of local option sales taxes, excise taxes, and income taxes. This article will begin by discussing best practices in regards to the expanded use of service charges and regulatory fees. Ideas presented in this section have been derived from the (2005) ICMA publication, “A Revenue Guide for Local Government: Second Edition,” by Dr. Robert L. Bland. In addition, the article will look at economic development and public-private joint ventures as strateg...