PAD505 – Public Budgeting and Finance| PAD 505 – Public Budgeting and Finance | Strayer University
My city’s general property tax generates around 25 percent of its revenue. The percentage of revenue generated by the general property tax in my city has increased year after year with an average annual growth rate (4%) over the last five years. The increase in property values and commercial activity can be attributed by a variety of factors. Recent changes in local laws have also allowed higher tax rates on certain properties.
The city plans to raise its general property tax by 2% as part of a financial plan. It cites increased costs due the population growth for this decision. This increase in property tax revenue will go towards various projects, such as community and infrastructure programs.
In general, I think it’s clear that property taxes are a major source of revenue in my city. Their contribution only grows each year. These funds must be managed in a responsible manner to ensure that the citizens continue to reap their benefits long after they are gone.