Many parks are funded by tax levies designated for specific purposes for a limited time. They are often one-time levies and not a permanent, sustainable source of funding, unless renewed by popular vote. Some cities issue special purpose levies with a regular schedule for renewal votes to hold city leaders accountable for the levy’s promises.
Park Funding Use
Many jurisdictions opt to levy taxes on the value of personal property, to fund parks and recreation initiatives. State laws vary whether revenue from property tax levies can be used for operating costs or capital investments. Property tax levies can be passed through legislative initiative or tax referendum.
Minneapolis, MN
The Minneapolis Park and Recreation Board (MPRB), a semi-autonomous agency, is authorized by state law to levy property taxes within the parameters set by the Minneapolis Board of Estimate and Taxation and currently comprise 58 percent of MPRB’s annual revenues.
Park Funding Use
Sales and use taxes can be passed by legislatures or by popular vote. Some jurisdictions allocate a certain percentage of local or state sales taxes to parks, while others pass specific sales tax measures dedicated parks and Special Park Districts. With any new tax measures, additional legislation might be required to prevent tax revenue from simply replacing general fund dollars—a zero-sum game.
General sales taxes apply to a broad base of goods. Substantial revenue, therefore, can be generated with a relatively low tax rate, keeping the per-household burden low. Sales taxes are regressive, however, and have a greater impact on low-earners, particularly when applied to essential goods, such as food and clothing. So called “sin taxes,” are a subset of sales taxes imposed on commodities or activities that are perceived to be unhealthy or have a negative societal effect±—cigarettes, gambling and alcohol for instance. Critics contend that these taxes also disproportionately affect low-income families.
Colorado Springs, CO
In 2019, Colorado Springs, CO, passed a Taxpayer Bill of Rights (TABOR) ballot measure to retain $7 million in existing sales tax for parks and trails.
Boulder, CO
Boulder allocates 0.25 percent of its sales tax revenue to open space and mountain parks.
St. Louis, MO
St. Louis City, St. Louis County and St. Charles County are jointly funding the Great Rivers Greenway with tenth-of-a-cent sales tax.
Philadelphia, PA
Philadelphia is funding its Rebuilding Community Infrastructure program with bonds paid by the Philadelphia Beverage Tax, a tax on the distribution of sweetened beverages.
Park Funding Use
A general obligation bond (GO bond) allows local governments to borrow money. It is a municipal bond backed by the credit and taxing power of the issuing jurisdiction. General obligation bonds rely on the investor’s trust that a municipality will repay its debt through taxes on residents. The city can use the revenue to fund parks and repaying with tax revenue. General obligation bonds are approved by elected officials through the legislative process or by citizens by ballot measure, according to local and state laws.
Portland OR
In 2019, voters passed a $475 million bond for open space, parks, wildlife habitat, watershed protection, recreation and trails.
Dorchester County, SC
Voters passed a $38 million bond to fund improvements to parks and acquisition of conservation land along the Ashley River.
Scarborough, MN
Voters passed a $2.5 million bond for open space, parks, wildlife habitat, watershed protection, trails, and recreation.
Park Funding Use