Question

Suppose that the state legislature in one state votes to eliminate all local taxes. All funding for local public services (schools, police, fire protection, parks, etc.) will instead come from intergovernmental grants from state governments. Each jurisdiction will simply receive a set amount of funds per household, adjusted for number of children. (The state will provide more funding for households with children to compensate for costs of schooling.) What changes, if any, would you expect to see in local zoning policies? Do you expect the policy change to affect all types of zoning? Explain.

Answer 1

We would expect to see no change in local zoning policies because all the funding for local public services will come from government.

Yes we do expect the change to affect all types of zoning because:

• The policy is going to benefit the residential zone by funding for their local public services.
• To fund all these services government needs more revenue.
• The corporate and industrial sector will be affected as government generates a lot of revenue from these sectors through various taxes and rules & regulations (Government has only eliminated local taxes.           
• So the change in policy will definitely affect all types of zoning.

*hope the answer will help you. Please give feedback.