Taxation and citizen choice: The effect of a county charter on property taxes

Abstract

As saliency of the tax burden increases, the preference for a lower burden increases, but most counties are restricted by the state from adopting new taxes or changing the existing rates. Some states allow counties to adopt a charter, freeing them from state control. Using a panel of Florida counties from 1980 to 2017, we explore whether citizens act to reduce their property tax once a charter is passed. Citizens act against their preferences not by lowering burden but rather by increasing it in the case of debt service, suggesting citizens are maximizing their optimal tax burden in exchange for services.

The Influence of Transparency on Municipal Taxation: An Empirical Analysis

“…Several researchers, such as Navarro-Galera et al (2016) and Yaru (2020), consider that higher population density implies more tax revenues, resulting from greater demand for public services. Larson and McDonald (2023), however. find that population density has a negative and statistically significant relationship with property tax revenues.…”

An (in)effective tax and expenditure limit (TEL): Why county governments do not utilize their maximum allotted property tax rate

“…The initial reduction of government spending that comes from implementing a TEL disappears over time as governments find other ways to fund expenditures (Joyce & Mullins, 1991). While most residents support limiting tax rates and expenditures (McDonald & Larson, 2020; Mikesell, 2013), research shows that these same residents still expect the same service provisions, even if less revenue is available (Deller et al, 2012; Joyce & Mullins, 1991). Without a reduced demand for public goods and services, governments must search for other ways to provide for their residents.…”