Luna, LeAnn; Bruce, Donald J.; Hawkins, Richard R. - In: National Tax Journal 60 (2007) 1, pp. 45-63
We examine why and when some local governments choose to reach a legal sales tax rate maximum while others do not. We employ a duration model to study Tennessee local option sales taxes between 1975 and 1999. Our results show that between 1975 and 1984, counties with lower sales tax capacity...