This review of tax limitation legislation and its impact on the community college, begins by examining the provisions of this type of legislation, its historical precedents, the extent to which tax limitation legislation was passed in the 1970's, and its implications for local control of community college services. Next, it is noted that representatives from Florida, Georgia, Kentucky, Missouri, North Carolina, South Carolina, and Tennessee reported that little or no impact had been felt from tax limitation legislation on community college education. In contrast, reports are then presented from 17 states, which detail changes in educational mission and college programming, governance and management, staffing, and financing that are directly attributable to such legislation. The 17 states are: Arizona, California, Colorado, Connecticut, Hawaii, Idaho, Illinois, Iowa, Maryland, Michigan, Nebraska, New Jersey, New York, Pennsylvania, Texas, Virginia, and Washington. The report concludes with a review of the literature, providing numerous suggestions for dealing with cutbacks through tactical changes in institutional operation, new approaches to teaching and learning, program budgeting, resource development programs, alliances with community agencies and industry, extending experiential learning, and volunteerism. A bibliography is provided. (AYC)