Advanced Search
MyIDEAS: Login to save this article or follow this journal

Impact of State-Level Tax and Expenditure Limits (TELs) on Government Revenues and Aid to Local Governments

Contents:

Author Info

  • Sharon N. Kioko

    ()
    (Maxwell School of Syracuse University, Syracuse, NY, USA)

  • Christine R. Martell

    (School of Public Affairs, University of Colorado Denver, Denver, CO, USA)

Registered author(s):

    Abstract

    This article investigates the impact of state-level tax and expenditure limits (TELs) on state government revenues and aid to local governments. Using an instrumental variable approach to control for endogeneity, the authors find that the general fund TELs (i.e., revenue and expenditure limits) have led to substantial increases in tax and nontax revenues. States with procedural limits (i.e., those with voter approval and/or legislative supermajority requirements votes) have significantly lower tax revenues. For states with these procedural limits, their ability to impose new or higher taxes is limited by the rules for passing such legislation. This study also finds that states with general fund TELs have higher levels of aid to local governments, while those with procedural TELs have lower levels of aid. Local government property tax limits do not have any impact on taxing authority of states and have only marginal impacts on the state-aid programs.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://pfr.sagepub.com/content/40/6/736.abstract
    Download Restriction: no

    Bibliographic Info

    Article provided by in its journal Public Finance Review.

    Volume (Year): 40 (2012)
    Issue (Month): 6 (November)
    Pages: 736-766

    as in new window
    Handle: RePEc:sae:pubfin:v:40:y:2012:i:6:p:736-766

    Contact details of provider:

    Related research

    Keywords: tax and expenditure limits (TELs); state government revenues; intergovernmental relations; instrumental variables;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:40:y:2012:i:6:p:736-766. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.