Impact of Tax and Expenditure Limits on Local Government Use of Tax-supported Debt

Sharon N. Kioko, Pengju Zhang

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

This study seeks to broaden our understanding of the impact tax and expenditure limits (TELs) have had on local governments. We chose to focus on local government use of tax-supported debt as TELs are limits on the property tax base and related revenues, two essential components used to determine a government’s legal authority to issue tax-supported debt and its fiscal capacity to maintain long-term solvency. Using county-level data, our analysis finds TELs have a negative impact on local government use of tax-supported debt, especially if the government is subject to a limitation on assessed valuation or the property tax levy.

Original languageEnglish (US)
Pages (from-to)409-432
Number of pages24
JournalPublic Finance Review
Volume47
Issue number2
DOIs
StatePublished - Mar 1 2019
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics
  • Public Administration

Keywords

  • debt
  • debt limits
  • tax and expenditure limits (TELs)

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