Military Families’ Tax Break Will Hit Cities at a Tough Time
Just when local officials thought they couldn’t get any more bad news about shrinking tax revenues, they must now deal with a new federal law that will take away even more from city coffers.
The act, passed on Veterans Day, will extend residential benefits to spouses of military personnel, allowing them to retain residency in their home state for tax and voting purposes.
The change is a major help to military spouses, some of whom have been forced to move because of a service member’s job. Because of the act, they’ll no longer have to change their residency each time they relocate.
For local cities, however, it will mean less in personal property taxes to collect next year. And it’s coming at a time when other revenues – everything from real estate tax to food and beverage taxes – are shrinking.