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Is Local Discretionary Sales Tax Adopted to Counteract Fiscal Stress?

Author

Listed:
  • DaeJin Kim

    (Sungkyunkwan University, Seoul, South Korea)

  • Sang Seok Bae

    (Ajou University, Suwon, South Korea)

  • Robert J. Eger III

    (Florida State University)

Abstract

Economic development has traditionally relied on operational resources concentrated in the government's general fund balance for postinfrastructure operations. In this article, the authors explore the phenomenon of infrastructure surtax adoption for development and operation in an empirical analysis of Florida counties. The authors focus their analysis on the factors that influence the adoption grounding the analysis in the theoretical framework of the policy innovation and adoption literature. Their results support earlier findings; however, the most striking point is that fiscal stress and direct tax burden do not statistically influence the infrastructure surtax innovation.

Suggested Citation

  • DaeJin Kim & Sang Seok Bae & Robert J. Eger III, 2009. "Is Local Discretionary Sales Tax Adopted to Counteract Fiscal Stress?," Economic Development Quarterly, , vol. 23(2), pages 150-166, May.
    • Handle: RePEc:sae:ecdequ:v:23:y:2009:i:2:p:150-166
    DOI: 10.1177/0891242408327708
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Whitney B. Afonso, 2015. "Leviathan or Flypaper: Examining the Fungibility of Earmarked Local Sales Taxes for Transportation," Public Budgeting & Finance, Wiley Blackwell, vol. 35(3), pages 1-23, September.

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