Lost and found tax dollars: The impact of local option sales taxes on property taxes and own source revenue
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 1 March 2015
Abstract
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.
Citation
Afonso, W.B. (2015), "Lost and found tax dollars: The impact of local option sales taxes on property taxes and own source revenue", Journal of Public Budgeting, Accounting & Financial Management, Vol. 27 No. 3, pp. 318-351. https://doi.org/10.1108/JPBAFM-27-03-2015-B002
Publisher
:Emerald Publishing Limited
Copyright © 2015 by PrAcademics Press