The Effect of Tax and Expenditure Limitations on the Revenue Structure of Local Government, 1962–87

Following the rise of tax and expenditure limitations in the 1970s, scholars have focused on assessing the effects of these limitations on local government fiscal outcomes. One key takeaway has been local governments’ decreasing reliance on property taxes and increased use of nontax revenue sources, in particular fees and changes. This study builds on this work by focusing on a particular type of fee—that is, payments in lieu of taxes (PILOTs). We find that, in Wisconsin, revenues received by municipalities from two PILOTs programs are affected quite differently. The extent to which the economy, municipal fiscal condition, tax and expenditure limits, and community characteristics affect PILOTs’ revenues depends on the extent to which the municipality can manipulate the payment structure.

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Impact of Tax and Expenditure Limitations on Local Government Savings

Local Government Budget Stabilization ◽

10.1007/978-3-319-15186-1_8 ◽

2015 ◽

pp. 141-169 ◽

Cited By ~ 2

Author(s):

Sharon N. Kioko

Keyword(s):

Local Government ◽

Tax And Expenditure Limitations ◽

Expenditure Limitations

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Do Tax and Expenditure Limitations Affect Local Government Budgets? Evidence From Panel Data

Public Finance Review ◽

10.1177/109114219802600202 ◽

1998 ◽

Vol 26 (2) ◽

pp. 118-136 ◽

Cited By ~ 55

Author(s):

Ronald J. Shadbegian

Keyword(s):

Panel Data ◽

Local Government ◽

Tax And Expenditure Limitations ◽

Expenditure Limitations

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The Impact of Tax and Expenditure Limitations on User Fees and Charges in Local Government Finance: Evidence from New England

Publius The Journal of Federalism ◽

10.1093/publius/pjz020 ◽

2019 ◽

Author(s):

Pengju Zhang ◽

Yilin Hou

Keyword(s):

Local Government ◽

New England ◽

User Fees ◽

Tax And Expenditure Limitations ◽

Local Public Finance ◽

Fiscal Constraints ◽

Local Government Finance ◽

Expenditure Limitations ◽

The Impact ◽

The Relationship

Abstract American local government financing shifted from taxation toward user fees and charges (UFCs) in the late 1970s, with substantial efficiency and equity implications. Normatively, the shift aligns with the benefit principle; positively, the shift is often attributed to tax revolts. We test the two associations via a difference-in-differences design and a fiscal stringency measure of tax and expenditure limitations (TELs); we also test the moderating effects of overrides on TELs. Our results confirm that state-imposed TELs caused the shift in local public finance; the results are robust to change of sample and empirical strategy. This article helps explain the relationship between tax revolts and non-tax revenue and provides evidence that fiscal constraints imposed by a higher level government on a constituent level can have significant effects, including effects beyond the intent of the constraints’ framers.

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Forecasting Revenue Impacts from COVID-19: The Case of Florida Municipalities

State and Local Government Review ◽

10.1177/0160323x211012056 ◽

2021 ◽

pp. 0160323X2110120

Author(s):

Hai (David) Guo ◽

Can Chen

Keyword(s):

Local Government ◽

Short Term ◽

Fiscal Planning ◽

Revenue Structure ◽

Municipal Managers ◽

The Impact

Early in the pandemic, Florida municipal managers indicated that forecasting the impact on local revenues was one of their top priorities in responding to the pandemic, yet such a tool has not been widely available. This study offers simple and straightforward fiscal planning guides for assessing the short-term and long-term impacts of the COVID 19 recession on local government revenues by estimating the revenue declines among 411 Florida municipalities from FY 2021 to FY 2023. The forecast results predict revenues will be reduced by $5.11 billion from 2019 pre-pandemic levels for Florida cities in fiscal years 2021 through 2023. The decline is forecast to be 3.54 percent in FY 2021, 4.02 percent in FY 2022, and 3.29 percent in FY 2023. The revenue structure matters for estimating the revenue decline.

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