LOST and Found Tax Dollars: Local Option Sales Taxes, Property Taxes, and Own Source Revenue

2013 ◽  
Author(s):  
Whitney Afonso
Keyword(s):  
Property Taxes ◽  
Sales Taxes ◽  
Lost And Found ◽  
Local Option

Lost and found tax dollars: The impact of local option sales taxes on property taxes and own source revenue

2015 ◽  
Vol 27 (3) ◽  
pp. 318-351 ◽  
Author(s):  
Whitney B. Afonso
Keyword(s):  
Property Tax ◽  
Property Taxes ◽  
Policy Variable ◽  
Level Data ◽  
Lost And Found ◽  
Local Option Sales Tax ◽  
Local Option ◽  
The Impact ◽  
The Relationship ◽  
Primary Contribution

The relationship between the local option sales tax (LOST) and property taxes and own source revenue is not well documented in the literature. This may be due in part to the aggregated nature of the data, which fails to capture different motivations for adoption of LOSTs. Using county-level data from 35 states, this study finds that LOSTs increase own source revenue and in some circumstances decrease property tax burdens. The primary contribution of this research is that it uses a policy variable, the LOST rate, to distinguish between the two types of counties that use their LOST revenues differently. This research represents the first step in bridging the gap between the LOST literature and the tax mix choice literature.

Local Sales Tax and Revenue Volatility

2011 ◽  
Vol 29 (1) ◽  
pp. 167-180
Author(s):  
Yilin Hou ◽  
Jason S. Seligman
Keyword(s):  
Local Property ◽  
Sales Tax ◽  
Property Taxes ◽  
Sales Taxes ◽  
Local Option Sales Tax ◽  
Short Run ◽  
Local Option ◽  
Revenue Volatility ◽  
Mean Variance ◽  
Variance Approach

Abstract States have long used the sales tax as a revenue source. Since the 1970s states started granting localities the option of levying local sales taxes to enrich their revenue portfolio. Local sales taxes are often structured to reduce local property taxes; in most localities this strategy prevails in referendum. Since sales taxes are more elastic than property taxes, substituting away from the latter poses the threat of increased revenue volatility. We employ a panel dataset of counties in the state of Georgia to examine the effects of local option sales tax on own-source revenue volatility. We decompose volatility into the long- and short-run, use a mean-variance approach in considering correct revenue portfolios across tax-instruments, and find that substitution towards sales tax amplifies revenue variability. Our study fills a niche in die revenue volatility literature; our results imply that sales taxes may have been overweighed in current revenue portfolios.

The Effect of Local Option Sales Taxes on Local Sales

2010 ◽  
Vol 38 (6) ◽  
pp. 659-681 ◽  
Author(s):  
Gary C. Cornia ◽  
Scott Grimshaw ◽  
Ray Nelson ◽  
Lawrence Walters
Keyword(s):  
Sales Taxes ◽  
Local Option

scholarly journals Analyzing voter support for California’s local option sales taxes for transportation

2020 ◽  
Author(s):  
Anne Brown ◽  
Jaimee Lederman ◽  
Brian D. Taylor ◽  
Martin Wachs
Keyword(s):  
Sales Taxes ◽  
Local Option

SALTy Citizens: Which State and Local Taxes Contribute to State-to-State Migration?

2020 ◽  
pp. 0000-0000
Author(s):  
Amy M. Hageman ◽  
Sean W.G. Robb ◽  
Jason Schwebke
Keyword(s):  
Local Governments ◽  
Property Taxes ◽  
Multiple Sources ◽  
Related Factors ◽  
Net Migration ◽  
Local Taxes ◽  
Sales Taxes ◽  
State And Local ◽  
Using Data ◽  
State And Local Taxes

State and local governments depend heavily on revenue generated from state and local taxes (SALTs). Migration between states occurs for many non-tax reasons, but prior research suggests tax-related factors may play an important role. Even so, the specific SALTs motivating state-to-state migration remain unclear given mixed and inconclusive results of prior studies. This study examines state and local tax variables individually and then jointly, and controls for important economic and non-economic factors to determine which SALTs matter to residents when making relocation decisions. Using data collected from multiple sources for 2008 to 2015, results indicate overall state and local tax burden, individual income taxes, select sales taxes, and property taxes are all significantly and negatively associated with taxpayer migration. Further, select sales taxes and property taxes seem to be most significantly associated with migration. We also provide some intuition related to the economic impact associated with net migration.

scholarly journals Lessons Learned from 40 Years of Local Option Transportation Sales Taxes in California

2018 ◽  
Vol 2672 (4) ◽  
pp. 13-22 ◽  
Author(s):  
Jaimee Lederman ◽  
Anne Brown ◽  
Brian D. Taylor ◽  
Martin Wachs
Keyword(s):  
Public Transit ◽  
The United States ◽  
Lessons Learned ◽  
Road Maintenance ◽  
Sales Taxes ◽  
Transportation Projects ◽  
Mode Share ◽  
Road Projects ◽  
Local Option ◽  
Almost All

Jurisdictions across the United States have increasingly turned to local option sales taxes, or LOSTs, to fund transportation projects and programs. California is an enthusiastic adopter of these measures; since 1976, residents in over half of the state’s 58 counties have voted on 76 LOST measures. As of 2017, 24 counties, home to 88% of the state’s population, have LOST measures in place. Many counties have enacted multiple measures, with passage rates especially high among renewal and follow-on measures. This research is the first comprehensive analysis of LOST measures; drawing on measure expenditure plans to determine the range and frequency of transportation projects and services funded. This detailed review of expenditure plans across dozens of urban, suburban, and rural California counties offers insight on these measures and the projects and programs they fund. Overall, this study finds that LOSTs are heterogeneous, often including something for nearly every interest group. Almost all of the measures studied dedicate funding to a mix of transportation modes, including highways, public transit, local road maintenance, and active transportation. Expenditures on particular modes vary, reflecting transportation geography across counties. On average, 60% of LOST expenditures in California fund road projects and over 30% are allocated to public transit. Measures often dedicate a substantially larger share of revenue to transit relative to transit’s mode share. Finally, LOSTs typically appeal to diverse local interests by returning a portion of revenues to local jurisdictions to address local priority projects.

Local option sales taxes and county rainy day funds

2016 ◽  
Vol 28 (4) ◽  
pp. 467-487 ◽  
Author(s):  
Helisse Levine ◽  
Marc Fudge ◽  
Geoffrey Propheter
Keyword(s):  
Selection Bias ◽  
Local Governments ◽  
Fiscal Stress ◽  
General Fund ◽  
Sales Taxes ◽  
Fund Balance ◽  
Correction Technique ◽  
Local Option ◽  
Per Capita ◽  
Positive Effect

Rainy day stabilization funds (RDSFs) and local option sales taxes (LOSTs) are two strategies local governments deploy to combat fiscal stress. While the literature on both is robust, it has thus far failed to consider empirically that the two may be connected. One way the marginal LOST dollar could be spent is by saving it for future use. We test the connection with a sample of 414 counties and correct for selection bias with the Heckman correction technique. We find that each $10 increase in LOST revenue per capita is associated with a $0.10 increase in undesignated general fund balance. Though small, the positive effect size supports the theory that LOSTs contribute to a greater propensity to save.

Sign in / Sign up

Export Citation Format

Share Document