Local Tax Policy

Chapter 1: Local Tax Policy

Localism as a Normative Good

Political and Economic Constraints on Localism

The Logic of the Property Tax

A Good Tax under Siege

There Are No Alternatives to Taxing Policy

Raising Revenue in the Modern Economy

Possible Solutions



Chapter Two: Local Taxation and American Federalism

The Logic of Localism

Economic Efficiencies

Political Virtues

Localism and Taxing Authority

Fiscal Autonomy under Siege



Chapter Three: Local Limits

The Politics of Taxation

Political Imperatives

Provide Services

Create Wealth

Avoid Redistribution

Political Biases

Tax Competition

Exporting the Tax Burden

Raising Revenue in an Era of Antitaxation

Building a Sound Local Tax System



Chapter 4: The Logic of the PropertyTax

Property Taxation in the United States

Virtues of the Property Tax

An Old Tax

A Stable Tax

An Easy-to-Administer Tax

A Benefits Tax

A Tax that Allows Control

A Visible Tax



Chapter 5: The Property Tax under Siege

Public Unhappiness

Visibility

Unfair Administration

Shifting Property Tax Burdens

Consequences of Public Dissatisfaction

Tax Limitations

A Proliferation of Exemptions

Economic Development Exemptions

Charitable Exemptions

Farm Relief

Government Property

Tax Relief Measures

Homestead Exemptions

Homestead Credits and Circuit Breakers

Property Tax Deferrals

The Case of School Finance



Chapter 6: Local-Option Sales and Excise Taxes

Local-Option Sales Taxes

Policy Reasons for Imposing Local-Option Sales Taxes

Promotion of Local Autonomy

Administrative Efficiency

Diversification of the Tax Base

Public Acceptance

Problems with Local-Option Sales Taxes

Shrinking Tax Base

Interjurisdiction Competition

Regressivity

Reduced State Flexibility

Fiscal Disparities

Outlook for Local-Option Sales Taxes

Local-Option Excise Taxes

Lodging Taxes

Meals Taxes

Fuel Excise Taxes

Local-Option Real Estate Transfer Taxes

Local-Option Tobacco Taxes



Chapter 7: Income and Business Taxes

Local-Option Income and Wage Taxes

Policy Issues around Taxing Income and Wages

Visibility and Accountability

Economic Efficiency

Revenue Growth and Diversification

Fairness

Fiscal Disparities

Taxing Commuters or Exporting Tax Burdens

Intergovernmental Issues

Political Bias

Outlook

Local-Option Business Taxes

Local-Option Business Income Taxes

Gross Receipts/License Taxes

Business Personal Property Taxes

Payroll Taxes

Outlook for Business Taxes



Chapter 8: Nontax Revenue Options

Intergovernmental Aid

Policy Justifications for Intergovernmental Aid

Problems with Intergovernmental Aid

Unreliability

Less Autonomy

Efficiency

Consequences for Local Tax Policy

User Fees and Charges

Policy Reasons for Imposing Charges

Economic Efficiency

Diversification of Revenue Sources

Local Control

Problems with Imposing Charges

Limitations on Revenue Growth

Fairness Concerns

Outlook for User Fees

Utilities and Other Service-for-Fee Enterprises



Chapter 9: Financing Local Government in a Global Economy

Globalism

Technological Advances

Deregulation

An Aging Population

Tax Policy in the New Economy



Chapter 10: A Blueprint for Strengthening Property Tax

Challenges to Local Tax Policy and Political Autonomy

Recommendations for Strengthening Local Tax Autonomy

Educate the Public on the Virtues of the Property Tax

Ease the Excesses of the Property Tax Revolts

Protect and Expand the Property Tax Base

Address the Problems of School Finance Equalization