charts above show historical trends in city government finance.
The first chart ("Cities Using Local Option Sales Tax")
shows that the number of cities using the local option sales
has risen dramatically over the years. In fact, the number of
municipalities using the local option sales tax doubled between
1995 and 2000. Many municipalities have
also increased the rate of an existing sales tax.
The next chart ("City
Property Tax Growth Compared to Other Economic Change Measures")
examines city property tax growth as compared to inflation and
Nebraska economic growth. The Consumer Price Index - all Urban
Consumers data is the source of the inflation figures, and the
measure used for economic growth is the Nebraska gross state product
(GSP). Both are based on data collected by the U.S. Bureau of
the Census and are subject to change from time to time.
Property tax and motor
vehicle tax growth in support of Nebraska municipalities has been
at a lower rate than even inflation over the 20 years. Considering
all tax sources, city resource growth has been greater than the
rate of inflation, but less than the rate of growth in the economy.
growth in resources is due to the rapid growth in municipal sales
taxes and not growth in state aid, which has remained fairly stagnant
over the period. Municipal
sales tax growth has been one-third faster than the growth
in the economy over the period.