Once upon a time, California city officials used two tools to shape how their communities evolved – setting property tax rates and controlling land use. The former vanished when voters passed Proposition 13 in 1978, not only cutting property taxes by more than half, but sharply limiting future tax bites. In response, city officials relied more on land use to keep municipal engines running – aggressively seeking profitable development, such as sales tax-generating retail complexes, and using, or misusing, “redevelopment” to subsidize favored developers.
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