Property taxes are the largest source of general purpose revenue available to local governments. Cities, counties, special districts, and redevelopment agencies depend upon these revenues to provide a wide variety of programs and services to California residents. In the following pages, we discuss (1) the impact of the proposed property tax shift on local government revenues and programs, (2) the ability of local governments to raise revenues to offset property tax losses, and (3) the impact of the transfer of property taxes on land development proposals.