Does Earmarked Revenue Provide Property Tax Relief? Long‐Term Budgetary Effects of Georgia's Local Option Sales Tax*

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.     

Tax Structure and Growth: Are Some Taxes Better Than Others?

Using pooled cross-sectional data from 23 OECD countries, between1965 and 1990, I find evidence that the tax structure affectseconomic growth. Specifically, the proportion of tax revenueraised by taxing personal income has a negative correlation witheconomic growth. This result is robust to a rigorous sensitivityanalysis, where I control for other plausible growth determinantsin a systematic manner. Also, there is some empirical evidencethat tax progressivity, measured in terms of the long-run incomeelasticity of tax revenue, is associated with low economicgrowth.     

Do Industrial Tax Abatements Spur Property Value Growth?

Despite ongoing debate regarding the effectiveness of tax abatements, Michigan's Industrial Facilities Tax (IFT) abatement program has been widely and extensively used to boost local economic development. In this article, we estimate the effects of industrial property tax abatements on industrial, residential, and commercial property value growth in the context of regional competition for a panel of 152 communities in the five counties surrounding Detroit from 1983 through 2002. We find that: (1) offering tax abatements yields statistically significant positive impacts on industrial property value growth; (2) the impacts are larger in high tax than in low tax communities; (3) there are positive spillover effects of industrial tax abatements on residential and commercial property value growth; (4) tax abatements offered in competitor communities do not appear to influence own industrial property value growth; and (5) changes in the own as well as competitor property tax rates are important determinants of industrial property value growth. However, the fiscal benefits of tax abatements are quite small as compared with the costs of offering abatements even when spillover benefits to residential and commercial properties are considered.     

Diversifying Municipal Government Revenue Structures: Fiscal Illusion or Instability?

This paper examines (1) whether revenue diversification leads to greater instability as represented by revenue volatility, and (2) whether revenue complexity produces fiscal illusion as represented by increased public expenditures. These questions are answered by analyzing panel data on municipal governments between 1970 and 2002. The findings suggest that fiscal illusion does not occur among municipal governments, but revenue diversification does influence levels of volatility. However, the way in which municipalities diversify is important for achieving revenue stability. When diversification is considered in isolation, both tax and nontax diversification reduce revenue volatility. When diversification and complexity are considered simultaneously, the statistical effect of nontax diversification disappears. But, when a tax revenue structure is both diversified and complex, the likely outcome is greater revenue volatility rather than stability.     

Does the Local‐Option Sales Tax Provide Property Tax Relief? The Georgia Case

This study examines the effect of a one percent local-option sales tax (LOST) on property tax level, millage rate, and total spending level in Georgia counties. The study covers a 13-year period for 136 Georgia counties. The findings suggest that the law, which requires rollback of property taxes when the LOST is used, led to actual property tax relief as well as millage rate reduction. Regression results show that counties collecting the LOST tend to have per capita property taxes that are an average of $12 or 1.8 mills lower than counties that do not collect the tax. Whereas an extra dollar of LOST revenue provides about 28 cents in property tax relief, it leads to an increase in total spending of about 48 cents. In sum, the LOST has achieved the objectives of property tax relief, but on balance it is more an augmentation of than an effective substitute for property taxes in Georgia counties.     

Deconstructing School Choice: Problem Schools or Problem Students?

School choice has developed into one of the most contentious policy debates in K–12 education. Proponents argue that choice leads to competition among schools, thereby raising school quality for all students, while opponents claim that school choice often results in racial segregation and worsens inequity. The findings of this study, collected from qualitative interviews with school administrators and quantitative analysis of school performance and enrollment data, suggest that a common form of school choice, intradistrict transfer, may not always have the desired impacts on administrators, particularly with regard to intradistrict transfer programs. In addition, the author finds important differences in criteria that shape transfer decisions at different grade levels, and in the factors that shape the decision to transfer away from a school versus those that influence decisions about which school to transfer into.     

Who Benefits from Targeted Property Tax Relief? Evidence from Virginia Elections

This study examines the market impact of targeted property tax relief, which is critical for understanding who exactly benefits from a widely used local policy. Specifically, we investigate this in the context of two statewide ballot measures in Virginia that provided property tax relief or heightened expectations for future relief intended to aid disabled veterans and seniors, respectively. Using residential multiple listing service microdata from Virginia, results from a regression discontinuity analysis show that once the 2010 tax relief measures passed on Election Day, property values rose sharply in response to the sudden increase in demand for homeownership among the targeted groups. We find that senior preferred housing and properties within areas with higher proportions of seniors and veterans experienced the highest price appreciation, while areas with fewer veterans or seniors saw little impact. The findings suggest that this type of policy provides an immediate benefit to current homeowners, thereby offsetting benefits for subsequent homeowners within the targeted groups. This effect represents an unintended consequence of targeted property tax relief as a policy tool more generally, as immediate capitalization into home prices subsequently increases the cost of housing for many individuals the relief was intended to help.     

Privatisation in France 1993–94: New departures,or a case of plus ça change?

The present article focuses on the privatisation programme currently being implemented in France. It seeks to isolate the principal ways in which this programme differs from its predecessor of 1986–88, and to consider its likely impact on the French corporate landscape. This study finds the latest round of privatisations to be budget‐driven and ideologically spent, as the convergence criteria for economic and monetary union specified by the Maastricht Treaty become top government priorities in the countdown to 1997 (or 1999). The interest the programme has generated is almost entirely restricted to which purposes are to be served (and which are not) by its receipts. Those who look to it for new departures may well be disappointed: all the signs are that dirigisme is alive and well in France, with establishment solidarity representing as powerful a force in French capitalism as it ever did.     

1993: a Europe without borders or differences?

The author reviews current demographic trends in the countries of the European Community in the light of the efforts to abolish frontiers and border controls among member countries. She shows that there has been a general trend toward commonality in many aspects of demographic behavior.     

New politics for a New Germany? Transatlantic perspectives

Parties and Politics in Modern Germany. By GERARD BRAUNTHAL. Boulder, CO and Oxford: Westview Press, 1996. Pp.xii + 212, appendix, biblio, index. £44.50 (cloth); £13.50 (paper). ISBN 0–81333–2382–7 and ‐2383–5.

Germany's New Politics. Edited by DAVID P. CONRADT, GERALD R. KLEINFELD, GEORGE K. ROMOSER and CHRISTIAN SOE. Providence and Oxford: Berghahn Books, 1995. Pp.x + 325, biblio. £25 (cloth); £11.50 (paper). ISBN 1–57181–032–3 and‐033–1.

The Federal Republic of Germany at Forty‐Five. Edited by PETER H. MERKL. Basingstoke and London: Macmillan, 1995. Pp.xiv + 500, index. £47.50. ISBN 0–333–61754–1.     

Regional Mobilization in the New Europe: Old Wine in a New Bottle?

This conclusion links the various contributions in light of the introductory framework. In line with our framework, scepticism towards the EU has increased since 2004 across most of the EU regions (old and new) and state-centric approaches (regional influence mediated through the central executives) have become the dominant strategy for regional mobilization. Unmediated access through direct regional representation in Brussels remains an important side-strategy though, especially for sub-state nations and regions with the highest level of regional authority, as theoretically expected. Regional authority—more so than the difference between competitive versus cooperative multi-level designs—is an important predictor against centralization pressures resulting from European integration. Overall, changes in the ‘New Europe’ have intensified but not transformed the dominant patterns of regional mobilization, while system-level and regional variables mediate impacts of Europeanization.     

New Parties: Game Changers or ‘Much Ado About Nothing'?

This article is about the new parties that competed at the Danish parliamentary election of 2019. It addresses three key questions: why did they emerge, what types of parties were they and what impact did they have on Danish party politics. We can identify the causes for their emergence and participation in interplay of relatively lenient rules for party registration, personal ambition, recent events – particularly the Syrian crisis and arrival of refugees – as well as anti-establishment sentiments on the political right. The three new parties shared salient characteristics: they had dominant leaders, were genuinely new, had extraparliamentary origins and were independent of societal organizations. In terms of effects on the party system, the main impact was during the campaign where the strongly anti-immigration agenda proposed by two of the parties dominated the conversation and appeared to cause some movement by established parties in a more immigrant friendly direction. Only one of the far right parties won seats in parliament and its prospects of wielding influence on policy with a Socialdemocratic government are slim.     

Commemoration as Symbolic Reparation: New Narratives or Spaces of Conflict?

This article examines the role of commemorative processes as a form of symbolic reparation and their potential use in deeply divided societies. After discussing definitions and contexts of symbolic reparation, it will then explore the tensions inherent in this process as it speedily encounters hybridisation, the construction of narratives of ethnic identity and the political contestation of memory in deeply divided societies. An overarching question will be how symbolic reparation might meaningfully allow for the seeding of human rights norms and values in divided societies, and thus aid the recasting of both inter-communal relations and engagement between citizen and state.     

Direct Government Investment: Perverse Privatization or New Tool of Government?

In recent years, public administration scholars have called attention to a blurring of the boundaries between the public and private sectors. However, little attention has been focused on the administration of public programs that seek to impact private markets through direct government investment in private firms. The direct government investment approach is a new tool of government that has been applied in several countries and at multiple levels of government. Through an analytic mix of theory and attention to practice, this article leverages a deep case analysis of the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program to propose and utilize criteria for examining justifiable rationales for direct government investment, areas of administrative capacity necessary to manage such investments, and potential pitfalls of this new tool of government.     

Income inequality,development and electoral turnout – New evidence on a burgeoning debate

In this article, we comprehensively analyze the macro-level link between income inequality and electoral turnout. First, we re-examine prior studies which affirm that higher inequality puts a drain on electoral turnout in wealthy industrialized Western countries. Second, we evaluate whether there is an association between the two concepts in a larger, more representative sample of democratic elections around the world. Third, we analyze if income inequality has a different influence on participation in the Western and non-Western countries. Controlling for nine theoretically informed covariates, we assess these claims in a multilevel framework with evidence from more than 550 democratic elections between 1970 and 2010. We find little evidence that electoral turnout is affected by income inequality. Our results also indicate that this “null” effect does not differ between the Western- and the non-Western world. However, we do find evidence that mandatory voting laws and more decisive elections boost turnout considerably.