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

• Author: Douglas, Jennifer Ritter
• Position: Brief Article

Shadbegian, Ronald J.

National Tax Journal, June 1999, Pp. 221-237.

This article investigates the impact of local tax and expenditure limitations on local government revenues. Based on a study of 2,955 counties, it shows that tax and expenditure limitations decrease the level of property taxes, but increase the level of miscellaneous revenue, such as fees and user charges, and "other" taxes, such as excise, sales, and income taxes. In the 1970s and 80s, voters supported several new and restrictive state-imposed tax and expenditure limitations on local governments. Since that time, property taxes as a percentage of revenue have steadily declined from 70 percent in 1962 to 50 percent in 1987. On the other hand, during that same period, "other" taxes increased from 6 percent of revenues to 26 percent, and miscellaneous...