Wow. Just had a flashback thought. Worked in local government, and "user fees" were equated with ad valorem taxes, because both were collected by local governments (most predominantly for water and sewer, some solid waste). FWIW we in water and sewer were always frustrated that the Finance departments would try to game our charges for things like accounting, fleet maintenance, legal etc because our user fees brought in cash that could be used to support things like police, fire, etc. That, and it was easier to push us out in front to ask for more water and sewer charges than raise taxes. Just my take on history, please no flames.
Invariably as new things come up (think solid waste, recycling, stormwater management) those of us in the business of it preferred the revenue stability and avoided fights with other services like fire, police, libraries, etc.over tax revenue. Fairly accounted for, it was (relatively) easy to explain that look, by state law we now have to provide recycling. Many cities would do it with a user fee tacked on to water/sewer/solid waste bill. And invariably, some would howl that it should be paid with taxes so as to be tax deductible. Last city I worked for had a $5 a month solid waste fee that they DROPPED partly for this reason, which I thought was unwise. Many cities initiated stormwater utility enterprises to care for stormwater; something federal law mandated many many new requirements for. One city I worked for got creative and when solid waste costs went up in late 80's initiated something really new: non-advalorem line item charge on tax bill for...solid waste. Think it was about $100 annual. As the mayor who promoted it approached defeat in an election it was removed. Anyway, part of the argument was it was a user fee but tax deductible.
All of which is random recollections of someone who saw many fights as moves were made to move charges from user fees to federal tax deductible local taxes. Or create new user fees to relieve general funds of expenses without raising local taxes. So now since many fewer would be able to deduct local tax will we see a resurgence of various user fees that were dropped in favor of tax deductible ad valorem taxes? Just glad I'm not in those fights any more!
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