State control and supervision of property taxation

Over the past two decades state governments have exerted stronger control over local property taxation through mandating procedures to improve the quality of assessment and by imposing new levy and rate limits. Both actions carry implications of reduced local control over property taxation and constraint of local government revenue and expenditure capacity. An examination of available data and case studies reveal first of all that states have achieved some measure of success in improving assessment uniformity, but reform may not be as extensive as could be expected. Secondly, there is no strong evidence that levy and rate limits consistently restrict local government expenditures and revenue raising capabilities. Still, growing reliance on non-tax revenue resources substituting for lost property taxes may have the effect of narrowing local government policy capabilities.