Is Local Discretionary Sales Tax Adopted to Counteract Fiscal Stress?
DaeJin Kim Sungkyunkwan University, Seoul, South Korea Sang Seok Bae Ajou University, Suwon, South Korea Robert J. Eger, III Florida State University Economic development has traditionally relied on operational resources concentrated in the government’s general fund balance for postinfrastructure operations. In this article, the authors explore the phenomenon of infrastructure surtax adoption for development and operation in an empirical analysis of Florida counties. The authors focus their analysis on the factors that influence the adoption grounding the analysis in the theoretical framework of the policy innovation and adoption literature. Their results support earlier findings; however, the most striking point is that fiscal stress and direct tax burden do not statistically influence the infrastructure surtax innovation. Key Words: local sales tax fiscal stress tax adoption This version was published on May 1, 2009 Economic Development Quarterly, Vol. 23, No. 2, 150-166 (2009) DOI:
