Arguing over Transportation Sales Taxes
Voter-approved local option sales tax (LOST) measures for transportation increasingly fill gaps between falling fuel tax revenues and growing transportation investment needs. There are concerns, however, over whether LOSTs are an equitable transportation finance mechanism. Equity is a critical concept in public policy and finance, and debates over resource distribution on fairness grounds are often contentious. Sales taxes are typically regressive—disproportionately burdening low-income residents—and disconnected from transportation system usage.
Thorny Property Politics
Assessors play an important role in the property tax process in the United States. A homeowner’s taxes are based on the estimated value of their home, and that estimate is made by the assessor. If an assessor over- or under-values a property, then the homeowner will be over- or under-taxed. Over-taxation can produce a cascade of negative consequences, including foreclosure for failure to pay property taxes, while cities want to maintain high collection rates.
Fiscal Secession
Local governments across the United States often find themselves needing to seek out new revenue sources, particularly in the face of state limitations on taxation. Our research examines the usage of special assessments, a particularly popular, but understudied source of local revenues, in the state of California. Today, special assessments are commonly used to back local infrastructure projects and provide growing number of public services, from local fire and police protection to street maintenance and repair.