These charts show the changing relationship of state and local fiscal burdens since 1980. The property tax as a percent of all taxes has decreased from 45% of the total to about 34% over the period. This share has been taken up by growth in sales and income taxes. For a more complete discussion of this policy trend, go to "Major Trends in Tax Policy - The Shift Away From Use of the Property Tax".

Miscellaneous taxes and motor fuel taxes have also declined in relative importance.

The line chart shows this same information continuously instead of just at the beginning and at the end. One difference that should be noted is that the line chart combines motor vehicle taxes and fees with property tax for purposes of the analysis. By covering every year, the line chart clearly shows the impact of the revenue troubles from fiscal year 2001-02 through FY2003-04. Higher local property taxes caused in part by the termination of a $30 million annual additional state aid to community colleges program in FY2001-02 resulted in a shift to a greater reliance on property taxes beginning in FY2000-01. In FY2001-02, state aid to local governments was cut, increasing this reversal of the long term trend toward less reliance on local property taxes. Further state revenue declines and cuts in state aid for FY2002-03 and the 2003-05 biennium also appear in these charts.

This trend is also apparent in the chart showing state versus locally levied taxes. The analysis reveals that since 1968, the state versus the local share of the tax burden has reversed from 60% local and 40% state taxes to 60% state taxes and 40% local. While the state has taken over some programs from local governments during this period, such as the 20% share of Medicaid costs that used to be a county responsibility, most of this change is due to the growth of state aid to local governments. This is a topic that will be explored in more detail later. Again, the early years of this decade showed a reversal of this long term trend but FY2005-06 again reflects the trend of less local taxes and comparatively more state taxes.

For further detail about the reasons and methods for accomplishing this shift, go to "Major Tax Policy Trends - The Shift from Property Tax Support to Sales and Income Tax Support of State and Local Government".