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

Shadbegian, Ronald J.

Abstract:

This study estimates the impact of local tax and expenditure limitations (TELs) on the level and structure of local government revenue. Using a panel data set on 2955 counties (1962-87), this study demonstrates that TELs decrease the level of property and "other" taxes, but increase the level of miscellaneous revenue, partially offsetting the decrease in taxes. Thus, TELs shift the revenue structure of local government away from taxes and toward miscellaneous revenue. However, more stringent TEL laws eliminate local government's ability to increase the level of miscellaneous revenue to offset the decrease in taxes.

Citation

Shadbegian, Ronald J. (1999), The Effect of Tax and Expenditure Limitations on the Revenue Structure of Local Government, 1962-87, National Tax Journal, 52:2, pp. 221-38