Palo Alto Matters – Guest Commentary by Eric Filseth / June 11, 2017
Palo Alto City Council Member, Finance Committee Chair
Outlandish as it sounds, there’s actually a line of thinking for this.
Sales taxes are many cities’ largest revenue source, and they’re a major contributor in Palo Alto as well: normally about 15% of our General Fund, with the Stanford Shopping Center usually being our largest single contributor, last year about $5.5 million.
But in Palo Alto, our lead revenue source is actually property taxes, at about 20% of our General Fund. Most of our property tax revenue – about 75%, or $30 million for FY2018 – is residential. This is partly because our commercial base stays low (basically loopholes in Prop 13), but mostly because Palo Alto residential property values are high; and residential property values are influenced by school districts.