The Impact of Municipal Electric Profits on Local Public Finance

Strauss, Robert P.; Wertz, Kenneth L.

doi:10.1086/ntj41862083

Cited by 15 publications

(3 citation statements)

References 3 publications

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“…Colberg (1955) reported that Florida cities with large amounts of property exempt from taxes used electric utility enterprise surpluses to hold down property taxes--in effect substituting enterprise surpluses for property tax revenue lost through exemptions. Similar conclusions were arrived at by Strauss and Wertz (1976) and Vogt (1978), who studied North Carolina cities and, later, by DeHoog and Swanson (1988) in another study of Florida cities. ---------------------------------------------------------------------------------------- (1987,1990,1993).…”

Section: Literature Reviewsupporting

confidence: 88%

“…It also accounted for the effects of all other revenue sources--utility enterprises, intergovernmental revenues from federal, state, and county sources, and revenues from all other municipal sources, as well as per capita income, and whether the city had a city manager (ICMA, 1993). Together, these independent variables represent an expansion of earlier models (DiLorenzo, 1982;Khan & Stumm, 1994;Strauss & Wertz, 1976) and control for city size, economic conditions, and form of government. The dependent variables are per capita expenditures and own-revenues, both in total (less enterprise revenues and expenditures) and for the general fund, and per capita property taxes and valuation.…”

Section: Net Revenue Transfer Analysismentioning

confidence: 99%

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Revenue generation and expenditure implications of municipal non-utility enterprises

Stumm

1996

Journal of Public Budgeting, Accounting &Amp; Financial Management

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Although municipal enterprise funds provide several advantages to cities in the provision of goods and services, little is known about how these municipally operated businesses affect other aspects of the fiscal management practices of the cities which use them. This is particularly true of non-utility enterprises. This study uses the concept of net revenue transfers to examine how five commonly used non-utility enterprises impact the tax, expenditure, and revenue generation practices of cities. The results provide a new perspective and counter some commonly held views about non-utility enterprises.

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Section: Literature Reviewsupporting

confidence: 88%

Section: Net Revenue Transfer Analysismentioning

confidence: 99%

Revenue generation and expenditure implications of municipal non-utility enterprises

Stumm

1996

Journal of Public Budgeting, Accounting &Amp; Financial Management

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“…Some states do seem to use their liquor stores to help finance other state activities, although such a purpose is certainly not part of the external costs supposedly being controlled by state ownership. This is consistent with Strauss and Wertz's (1976) finding that a substantial portion of North Carolina municipal electric utility profits were used to finance the general fund. In addition, substituting liquor store profits for general tax effort undoubtedly has distributional implications, because spending on liquor is likely to be more regressive than are general taxes.…”

Section: Liquor Stores Lotteriessupporting

confidence: 86%

Taxing State and Local Government Production: Economic and Legal Perspectives

Schuldinger¹,

Zimmerman²

1999

National Tax Journal

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The Internal Revenue Service has held that the section 115 exclusion from taxation of the gross income state and local governments earn from public utilities or from the exercise of any "essential governmental function" applies to any income that accrues to them. This provides an incentive for government to produce public goods and services rather than contracting with private firms, although the incomplete contract literature suggests economic welfare might be enhanced by private production. Examination of the Constitutional limitations on taxation of states and the difficulties of applying the essential governmental function test suggests any tax Congress levies must be subject to limitations implicit in the Tenth and Eleventh Amendments that require specificity. A starting point for such a tax structure might be the unrelated business income tax currently levied on the activities of tax-exempt organizations. Congress might focus on those activities that the incomplete contract literature suggests would be better provided by private firms and that are financed with charges and fees.

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Abstracts of Documents in this Supplement

Johnson¹

1979

1978 Annual Supplement

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The Impact of Municipal Electric Profits on Local Public Finance

Cited by 15 publications

References 3 publications

Revenue generation and expenditure implications of municipal non-utility enterprises

Revenue generation and expenditure implications of municipal non-utility enterprises

Taxing State and Local Government Production: Economic and Legal Perspectives

Abstracts of Documents in this Supplement

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