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The Impact Of Local Option Sales Taxes On Retail Sales, Employment, Payrolls, And Establishments: The Case For Kansas

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  • John D. Wong

    (Wichita State University)

Abstract

This study examines the impact of local option sales tax differentials in the State of Kansas on retail sales, retail employment, retail payrolls, and the number of retail establishments. It was found that (I) the county tax rate is inversely and significantly related to retail sales per capita, retail sales per vendor, and retail employment per vendor; (2) the city tax rate is inversely and significantly related to the number of retail establishment per capita only; (3) there is a significant border effect for counties bordering another state on retail sales per capita, retail sales per vendor, retail employment per capita, retail employment per vendor, retail payrolls per capita, retail payrolls per vendor, and the number of retail establishments per capita; and (4) regional market dominance is directly and significantly related to retail sales per capita, retail employment per capita, retail payrolls per capita, and the number of retail establishments per capita.

Suggested Citation

  • John D. Wong, 1996. "The Impact Of Local Option Sales Taxes On Retail Sales, Employment, Payrolls, And Establishments: The Case For Kansas," The Review of Regional Studies, Southern Regional Science Association, vol. 26(2), pages 166-176, Fall.
    • Handle: RePEc:rre:publsh:v:27:y:1996:i:2:p:166-176
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    References listed on IDEAS

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    1. Walsh, Michael J. & Jones, Jonathan D., 1988. "More Evidence on the "Border Tax" Effect: The Case of West Virginia, 1979-84," National Tax Journal, National Tax Association, vol. 41(2), pages 261-65, June.
    2. Walsh, Michael J. & Jones, Jonathan D., 1988. "More Evidence on the "Border Tax" Effect: The Case of West Virginia, 1979-84," National Tax Journal, National Tax Association;National Tax Journal, vol. 41(2), pages 261-265, June.
    3. Due, John F. & Mikesell, John L., 1983. "Sales taxation : Johns Hopkins University Press, 1983," Business Horizons, Elsevier, vol. 26(6), pages 83-84.
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    Cited by:

    1. Rogers, Cynthia L., 2004. "Local Option Sales Tax (LOST) Policy on the Urban Fringe," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(1), pages 1-24.
    2. Brian E. Whitacre, 2011. "Do higher broadband adoption rates mean lower tax collections from local retail sales? Implications of e-commerce in rural areas of the US," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(2), pages 71-85, June.
    3. Adam T. Jones, 2016. "Mileage tax, property tax, sales tax, or fee: the best way to pay for commercial infrastructure that isn’t free," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(1), pages 81-98, February.
    4. Saxon, Nicholas & Tosun, Mehmet S. & Yang, Jingjing, 2015. "State and Local Sales Taxes and Business Activity in the United States," IZA Discussion Papers 9413, Institute of Labor Economics (IZA).
    5. Whitney B. Afonso, 2017. "State LST Laws: A Comprehensive Analysis of the Laws Governing Local Sales Taxes," Public Budgeting & Finance, Wiley Blackwell, vol. 37(4), pages 25-46, December.

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