Advertisement

Local Income, Sales, and Environmental Taxes

  • Harry KitchenEmail author
  • Melville McMillan
  • Anwar Shah
Chapter

Abstract

This chapter considers local income, sales, and environmental taxes. Personal income and sales taxes are major local taxes in only a handful of countries and they are often (but not always) supplemental to local property taxes. Their attractiveness often depends on the services to be funded and alternative revenues. While not as good as the property tax in meeting the criteria for a solid local tax, they have positive features. Relevant issues include local administration versus piggybacking, setting local rates versus tax sharing, limits or no limits on tax rates, cross-border effects, harmonization with senior governments, and capacity to generate revenue. Although comparatively small but of potential importance, environmental taxes are also reviewed.

References

  1. Bird, Richard M. 2011. Subnational Taxation in Developing Countries: A Review of the Literature. Journal of International Commerce, Economics, and Policy 2 (1): 139–161.CrossRefGoogle Scholar
  2. ———. 2012. The GST/HST: Creating an Integrated Sales Tax in a Federal Country. University of Calgary, School of Public Policy, SSP Research Papers, 5(12).Google Scholar
  3. Confee-Morlot, Jan, Lamia Kamal-Chaoui, Michael G. Donovan, Ian Cochran, Alexis Robert, and Pierre-Jonathan Teasdale. 2010. Cities, Climate Change and Multilevel Government. OECD Environmental Working Paper No. 14.Google Scholar
  4. Dahlby, Bev. 2012. Reforming the Tax Mix in Canada. University of Calgary, School of Public Policy Research Papers 5(14), April.Google Scholar
  5. Environmental Defence Fund. 2015. Tokyo: An Emissions Trading Case Study, May. https://www.ieta.org/resources/Resources/Case_Studies_Worlds_Carbon_Markets/2015/tokyo_case_study_may2015.pdf.
  6. Hall, John, and Stephen Smith. 1995. Local Sales Taxation: An Assessment of the Feasibility and Likely Effects of Sales Taxation at the Local Level in the UK. London: Institute for Fiscal Studies.CrossRefGoogle Scholar
  7. Haughwout, Andrew, Robert Inman, Stephen Craig, and Thomas Luce. 2004. Local revenue hills: Evidence from four US cities. Review of Economics and Statistics 86 (2): 570–585.CrossRefGoogle Scholar
  8. International Carbon Action Partnership. 2019. Japan-Tokyo Cap-and-Trade Program, April. https://icapcarbonaction.com/en/?option=com_etsmap&task=export&format=pdf&layout=list&systems[]=51.
  9. Kitchen, Harry. 2019. Beyond the Property Tax: What Taxes for Large Cities? In Funding the Canadian City, ed. Enid Slack, Lisa Philipps, Lindsay M. Tedds, and Heather L. Evans, 75–95. Toronto: Canadian Tax Foundation and Institute on Municipal Finance and Governance.Google Scholar
  10. Kitchen, Harry, and Robin Lindsey. 2013. Financing Roads and Public Transit in the Greater Toronto and Hamilton Area. Residential and Civil Construction Alliance of Ontario. www.rccao.com.
  11. Kitchen, Harry, and Enid Slack. 2016. More Tax Sources for Canada’s Largest Cities: Why, What, and How? IMFG Papers on Municipal Finance and Governance Series, No. 27, University of Toronto. http://munkschool.utoronto.ca/imfg/resources/. Accessed 16 June 2018.
  12. Koehn, Jonathan. 2009. A Community Takes Charge: The Evolution of Boulder’s Carbon Tax. In Green Cities: New Approaches to Confronting Climate Change, 195–206. OECD Workshop Proceedings, June.Google Scholar
  13. Lindsey, Robin. 2019. User Fees for Transportation: Road Tolls and Congestion Pricing. In Funding the Canadian City, ed. Enid Slack, Lisa Philipps, Lindsay M. Tedds, and Heather L. Evans, 123–156. Toronto: Canadian Tax Foundation and Institute on Municipal Finance and Governance.Google Scholar
  14. Litman, Todd. 2012. Road Pricing: Congestion Pricing, Value Pricing, Toll Roads and HOT Lanes. http://www.vtpi.org/tdm/tdm35.htm.
  15. Lotz, Jorgen. 2012. You Get What You Pay For: How Nordic Cities Are Financed. In IMFG Papers on Municipal Finance and Governance Series, University of Toronto, No. 7. http://munkschool.utoronto.ca/imfg/resources/.
  16. Mark, Stephen T., Therese J. McGuire, and Leslie E. Papke. 2000. The Influence of Taxes on Employment and Population Growth: Evidence from the Metropolitan Washington D.C. Area. National Tax Journal 53 (1): 105–123.CrossRefGoogle Scholar
  17. Mikesell, John L. 2010. The Contribution of Local Sales and Income Taxes to Fiscal Autonomy. Chap. 6 in Municipal Revenues and Land Policies, ed. G.K. Ingram and Y.-H. Yang. Cambridge, MA: Lincoln Institute of Land Policy.Google Scholar
  18. ———. 2011. Consumption and Income Taxes. Chap. 10 in Greenbook. International City Managers Association.Google Scholar
  19. Mikesell, John. 2013. Administration of Local Taxes: An International Review of Practices and Issues for Enhancing Fiscal Autonomy. Chap. 4 in A Primer on Property Tax Administration and Policy, ed. William J. McCluskey, Gary C. Cornia, and Lawrence C. Walters, 1st ed. John Wiley & Sons Ltd.Google Scholar
  20. Oates, Wallace E., and Robert M. Schwab. 2004. What Should Local Governments Tax: Income or Property? In City Taxes, City Spending: Essays in Honor of Dick Netzer, ed. Amy Ellen Schwartz, 7–41. Northampton, MA: Edward Elgar.Google Scholar
  21. OECD. 2007. OECD Environmental Performance Reviews: Denmark. Paris: OECD Publishing.Google Scholar
  22. ———. 2010. Cities and Climate Change. Paris: OECD Publishing.CrossRefGoogle Scholar
  23. ———. 2015. OECD Environmental Performance Reviews: The Netherlands. Paris: OECD Publishing.Google Scholar
  24. ———. 2016. Revenue Statistics 1965–2015. Paris.Google Scholar
  25. Puget Sound Regional Council. 2008. Traffic Choices Study: Final Report. April. https://www.psrc.org/sites/default/files/traffic-choices.pdf.
  26. SCAQMD (South Coast Air Quality Management District). 2018a. 2017 Annual Report.Google Scholar
  27. ———. 2018b. Popular Annual Financial Report for the Year Ended, June 30.Google Scholar
  28. Slack, Enid. 2011. Financing Large Cities and Metropolitan Areas. IMFG Paper on Municipal Finance and Governance, No. 3. Toronto: Institute on Municipal Finance and Governance.Google Scholar
  29. Slack, Enid, and Richard M. Bird. 2015. How to Reform the Property Tax: Lessons from around the World. IMFG Papers on Municipal Finance and Governance Series, University of Toronto, No 21, 2015. http://munkschool.utoronto.ca/imfg/resources/.
  30. Tanguay, Georges A., and Ian Gingras. 2011. Gas Prices Variations and Urban Sprawl: An Empirical Analysis of the 12 Largest Canadian Metropolitan Areas. CIRANO—Scientific Publication No. 2011s-3. http://ssrn.com/abstract=1919003.
  31. Wakabayashi, Masayo, and Osamu Kimura. 2018. The Impact of the Tokyo Metropolitan Emissions Trading Scheme on Reducing Greenhouse Gas Emissions: Findings from a Facility-Based Study. Climate Policy 18 (8): 1028–1043.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of EconomicsTrent UniversityPeterboroughCanada
  2. 2.University of AlbertaEdmontonCanada
  3. 3.Governance StudiesBrookings InstitutionWashington, DCUSA

Personalised recommendations