With the restructuring of existing local governance entities, local governments, and rural districts will maintain different tax rates in different areas to reflect the level of service being provided. The need to maintain differential tax rates, as well as the phase-in of impacts will be addressed in each individual regulation as the newly formed entities are created under the Local Governance Act. The differential tax rate will allow municipalities to charge citizens for the services they receive and recognizes that all citizens do not receive identical services. Local governments will have additional flexibility in determining variable tax rates.
