Document Type
Working Paper
Publication Date
5-9-2016
College/Unit
Chambers College of Business and Economics
Document Number
15-14
Department/Program/Center
Economics
Abstract
School districts in Ohio have the option of diversifying their revenue base by adopting income taxes. Using a panel of Ohio school districts that adopted a local income tax from 1990 to 2008, we find that revenues are pro-cyclical and fluctuate only mildly. For every dollar increase in average school district income, tax revenues increased by 21 and 3 cents in the long- and short-run. We also find that the school district tax base fully adjusts to its long-run equilibrium within three years. Our results highlight a revenue-stabilizing role of income tax bases on total school district tax revenues.
Digital Commons Citation
Hall, Joshua C. and Koumpias, Antonis M., "Growth and Variability of School District Income Tax Revenues: Is Tax Base Diversification a Good Idea for School Financing?" (2016). Economics Faculty Working Papers Series. 147.
https://researchrepository.wvu.edu/econ_working-papers/147