The Fiscal Capacity of Texas Cities, PRP 131
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The Fiscal Capacity of Texas Cities policy research project report evaluates the ability of 28 cities across the state to raise revenue in order to meet the service needs and demands of their residents. Texas cities once relied primarily on property taxes in order to fund the provision of services, but are now increasingly reliant on sales taxes and user fees as revenue sources. Cities have comparatively little control over the mix and funding levels of the public services which they provide, but must contend with state-imposed legal limits, intercity competition, low intergovernmental aid, and competing taxing jurisdictions in their efforts to maintain healthy and prosperous communities.