This paper studies the determinants of local tax rates. For the two main local taxes in Spain - the property tax and the motor vehicle tax - we test the existence of tax mimicking, yardstick competition and political trends in a sample of 2,713 municipalities. Using different spatial models, the...

The aim of this paper is to study the role of municipal quality of life as a driver of tax strategic interactions among local governments. The analysis is focused on the two main local taxes in Spain - property tax and motor vehicle tax - and on the municipalities above 50,000 inhabitants....