What Must a Local Government Do to Raise New Revenues?
In order to raise a new tax, assessment, or property-related fee, or to increase an existing one, local governments must comply with many of the same provisions discussed in the previous chapter. In general, these requirements are that local governments may use assessments and property-related fees only to finance projects and services that directly benefit property--and that most revenue-raising measures be approved in an election. Figure 5 summarizes the vote required in these elections.
Requirements for New Assessments
All new or increased assessments must follow the assessment calculation and election requirements discussed in the previous chapter. There are no exceptions to this requirement.
As a practical matter, this requirement will mean that programs that benefit people, rather than specific properties--such as libraries, mosquito abatement, recreation programs, police protection, and some business improvement programs--must be financed by general or special taxes or by other nonassessment revenues.
