Economist: Property Tax Could Be More Important for Localities in Future

Vadum, Matthew
May 2003
Bond Buyer;5/21/2003, Vol. 344 Issue 31640, p4
Trade Publication
The article reports on a panel discussion held at the Government Finance Officers Association's 97th annual conference. Although some believe that property taxes are an outdated relic of the past with an uncertain future, they are likely to play an increasingly important role in local government finance, an economist told attendees at the conference. Robert Tannenwald, assistant vice president and economist at the Federal Reserve Bank of Boston, said he believed “there is really no clear-cut solution to any of the structural problems that threaten state and local tax bases.” State and local tax systems are becoming obsolete, Tannenwald said, because the new knowledge-based economy is shifting to producing services instead of goods, and electronic commerce is expanding.


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