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Citation

Afonso, Whitney B. & Moulton, Jeremy G. (Online ahead of print). Local Sales Tax Exportation: The Impact of Commuters, Tourists, and College Students on the Tax Base. Public Budgeting & Finance.

Abstract

Local sales tax bases are determined by factors including businesses, residential populations, and nonresidential visitors. This paper capitalizes on the COVID-19 pandemic, using the sudden absence of in-commuters, tourists, and college students to estimate the contributions these populations have on the sales tax base in North Carolina's 100 counties. The findings suggest that losing one in-commuter results in a loss of roughly $1000 a month in taxable sales. Similarly, the loss of one hotel night booking results in a loss in taxable sales of approximately $525. This translates, for the median county, to exporting 17% to in-commuters and 12% to tourists. The impact on the loss of a residential college student is less clear.

URL

https://doi.org/10.1111/pbaf.12353

Reference Type

Journal Article

Year Published

Online ahead of print

Journal Title

Public Budgeting & Finance

Author(s)

Afonso, Whitney B.
Moulton, Jeremy G.

Article Type

Regular

Continent/Country

United States

State

North Carolina

ORCiD

Moulton - 0000-0002-1719-2657