Sales Tax Collections in Nonmetropolitan Communities

Abstract

When nonmetropolitan community sales tax rates exceed the mean, a one cent increase in the rate results in a 0.74 to 0.86 cent increase in taxable sales/collections.

The impact of USDA’s business and industry loan guarantee program on tax revenue in Oklahoma communities

“…Socio-economic characteristics such as population and income levels are clearly related to local retail sales tax collections (Brorsen & Lansford, 2013;Gruidl & Andrianacos, 1994), and our econometric approach controls for these factors. We gather U.S. Census data at the place (city/municipality) level for the state of Oklahoma for three specific periods: preintervention (2005), during (2010), and post (2015).…”

An Exploration of Revenue Structure Characteristics in Rural Municipalities

“…All rural towns are small towns, but not all small towns are rural. Scholars have studied a variety of aspects of small town public finance: sales tax rates and differentials (Snodgrass and Otto 1990; Mikesell and Zorn 1986; Luna 2004; Rogers 2004), sales tax collection (Brorsen and Lansford 2013), property tax incidence (Fritz 1982), revenue diversification (Carroll and Johnson 2010), fiscal illusion (Maher and Johnson 2008), fiscal policy planning (Mattson 1994; Dougherty, Klase, and Song 1999; Morton, Chen, and Morse 2008), fiscal health (Hite and Ulbrich 1986; Honadle and Lloyd-Jones 1998), and general revenue and expenditure patterns (Mattson 2016; Brown 2000; Helpap 2017).…”

“…The first dependent variable is whether a municipality has a LOST. Other studies that have considered the sales tax in the small town context are Snodgrass and Otto (1990), Mikesell and Zorn (1986), Luna (2004), Rogers (2004), and Brorsen and Lansford (2013). During the study’s observation period, 83 percent of the municipalities had adopted a sales tax, while 64 percent of rural municipalities had done so.…”

Local option sales taxes and county rainy day funds

“…Theory suggests that the two are connected, however, and we consider unreserved fund balances to better understand one way they might be related. A trend in local government public finance is to replace more stable property taxes with less stable sales taxes (Afonso, 2013;Brorsen & Lansford, 2013). This replacement amounts to substituting a more countercyclical, relatively income-inelastic revenue stream (the property tax) with a more procyclical, relatively income-elastic revenue stream (the sales tax).…”