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Property taxes should be equitable. 

Property tax relief should be equitable, cost-effective, and targeted to homeowners with low and moderate incomes burdened by their property tax bill.

Prior to finalizing annual budget decisions, localities should inform taxpayers of the property tax rate required to maintain revenues at the same level as the prior year. 

States and localities should carefully evaluate the effectiveness of the incentives they offer to attract or retain businesses. 

When considering bond financing, state and local policymakers should: 

Public retirement systems should establish a maximum vesting period of five years for DB plans and one year for employers’ matching contributions to defined contribution or hybrid plans. 

States and localities should move toward full funding of their retirement systems. 

Due to their regressive nature, raising state and local sales taxes should not be the first choice for increasing tax revenues. 

States and localities should include services in the taxable base to reduce regressivity and improve neutrality. 

Exemptions from state retail sales taxes should be narrowly designed to reduce their regressive nature and avoid pyramiding.