Abstract
As central city-suburban fiscal relationships remain strained, it is appropriate to consider the impact of increasing reliance upon local income and sales taxes within urban areas. Especially important questions in that environment include: Are tax base disparities among local units in a metropolitan area greater or less for income and sales taxes than for property taxes? Are property and non-property tax base disparities within the region additive or off-setting? Are central city-suburban fiscal relationships different under income and sales taxes from those found under property taxes? Are local income and sales taxes more or less equalizing with respect to income than property taxes?
Highlights
Even before California's Proposidon 13 intensified the property tax revolt in 1978, there was pressure to diversify local tax structures by opening income and/or sales taxes to local units
For each ofthe eightlargest cities,the actual tax base per capita was greater than its residents' per capita income,with the ratios ranging from 1.27 to 2.36
The local income taxes studied here are those of Ohio municipalities in the Cincinnati and Cleveland SMSAs,where the taxes apply on the bases of both residence and employment, and without reciprocity—in short, the sort of tax which Stephens' work suggests will be most productive for central cities
Summary
Metropolitan Areas: Effects On Disparities And Central City-Suburban Fiscal Relationships. 4] For some units, especially large cities, income and sales taxes contribute larger shares of total local taxes(19.1% and 14.0%, respectively, for the 46 largest cities in 1977-78) Of these cities, 25 had a general sales tax and 13 had an income tax.[Bureau ofthe Census, 1980b, Table 8]The view that the significance ofsuch revenue is likely to continue to increase is supported by past experience, the mounting dissatisfaction with the property tax, and a relaxing of sentiment against local nonproperty taxes.^. As central city-suburban fiscal relationships remain strained, it is ap propriate to consider the impact of increasing reliance upon local income and sales taxes within urban areas. Urban fiscal policy requires information on these and similar questions/In the existing research, the important comparison between property and non-property taxes seldom is made; hypothetical tax structures, rather than actual institutions, often are studied, even though the differences
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
