Does earmarked revenue provide property tax relief? long-term budgetary effects of Georgia's Local Option Sales Tax

Zhirong J Zhao, Changhoon Jung

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

This study examines the long-term effects of the 1% General-purpose Local Option Sales Tax (LOST) on the level of property tax in Georgia counties with a pooled interrupted time-series analysis. The LOST has been earmarked for property tax relief in Georgia counties since 1976, but debates remain on whether the proceeds have been used as additional revenues. We find that the adoption of LOST brought short-term property tax relief but not long-term property tax reduction. The result suggests that long-term property tax relief would not be realized by earmarked revenue without careful policy design to safeguard fungibility.

Original languageEnglish (US)
Pages (from-to)52-70
Number of pages19
JournalPublic Budgeting and Finance
Volume28
Issue number4
DOIs
StatePublished - Dec 1 2008

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tax relief
property tax
taxes
sales
revenue
tax reduction
time series analysis
Sales tax
Tax relief
Property tax
Revenue

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Does earmarked revenue provide property tax relief? long-term budgetary effects of Georgia's Local Option Sales Tax. / Zhao, Zhirong J; Jung, Changhoon.

In: Public Budgeting and Finance, Vol. 28, No. 4, 01.12.2008, p. 52-70.

Research output: Contribution to journalArticle

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