Compensating changes to the property tax levy? An empirical test of the residual rule
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Authors
Brien, Spencer T.
Subjects
Advisors
Date of Issue
2017
Date
Publisher
Sage Publications
Language
Abstract
The residual view of the property tax assumes that local governments set their levies equal to the
difference between budgeted expenditures and expected receipts from other revenues. This approach
allows them to adjust the levy to achieve greater overall revenue stability potentially at the cost of tax predictability. This article presents a formal model of the residual rule and uses it to test whether this active approach to property tax administration describes observed fiscal behavior. This test is conducted using data from county governments in Georgia over a fifteen-year period. The results support the validity of the residual rule over an alternative model of passive tax administration.
Type
Article
Description
The article of record as published may be found at http://dx.doi.org/10.1177/1091142117700719
Series/Report No
Department
Graduate School of Business and Public Policy (GSBPP)
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
25 p.
Citation
S.T. Brien, "Compensating changes to the property tax levy? an empirical test of the residual rule," Public Finance Review, (2017), pp. 1-25.
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.