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Properh• Taxes Property tax is a source of revenue that tends to be more stable than other revenue sources. which can fluctuate substantially from year to year. While local property tax revenue levels have been less stable in recent years. this is due to an unprecedented combination of State actions to redirect propem• tax revenues and an overall economic downturn which had an abrupt effect on propem values. Prior to this recession, property was appreciating at record rates. Under more typical conditions propertyvalues tend to appreciate more moderately. declining assessed values are rare, and local overall property tax revenues are very stable. Property taxes are assessed on land. buildings. and capital equipment. Typically. propem taxes are associated with the construction of new buildings; however significant revenues can also be generated by the installation of new capital equipment in existing buildings. Because industrial machinery can have a relatively high value. (even greater than the buildings in which it is housed, in the case of some capital intensive operations) this is an opportunity for the City to increase property tax revenues while encouraging businesses to invest in modernizing their facilities. While the Personal Property Tax Rebate program (Action 2.4) is designed to return a portion of personal property taxes resulting from neH investments to businesses. these rebates are temporm. and ultimately, encouraging companies to invest in capital equipment will result in long-term increases in revenues. This Chapter does not provide specific recommendations for actions to take to increase local propem tax assessments: however. numerous actions recommended in the Reinvesting in San Leandro. and Sustaining Economic Growth include mechanisms that will encourage and facilitate private investment in buildings and capital equipment. Other Revenue Sources Revenues from other General Fund sources will be enhanced indirectly through the City's on economic development efforts in the three other strategy areas. In particular. business attraction and expansion efforts will help to generate increased business license and utility use taxes. These are both general revenues. which means that as with propem and sales taxes. the Cin• will have the ability to spend these revenues as it sees fit to best meet local needs. Transient occupancy tax (T.O.T.) is a general revenue source that is often linked to economic development. For example. many jurisdictions earmark a portion of transient occupancy taxes for tourism promotion and for marketing local facilities for convention and conference activities. Actions contained in the Enhancing the Local Quality of Life section will help to attract more visitors to San Leandro. which will help to generate additional T.O.T. revenues. a portion of which could be used to help support local Visitor promotions. 5� z6'