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Incentive Taxation Blog

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LVT Helping Local Jurisdictions to Secure Revenue Stability

What is it that has led many cities over the years to seek revenue stability through “economically sensitive taxes” - business, income, real estate transfer, sales, utility, and hotel taxes? There have been a multitude of responses and assumptions made over time relative to each jurisdiction’s leadership and public policy. Suggestions of extreme short sightedness and inertia are excuses not actionable explanations.

According to the 
US State Government Tax Collections Summary Report: 2010,the 2007 Census of Governments

Funding Public Transportation/Infrastructure

Value capture is a recognized tool around the world to pay for transit projects without causing economic distortions or drag that usual forms of taxation impose. Value capture is also a benefits-received concept for transit funding.  From Australia to Hong Kong to Vancouver, value capture has proven to be reliable source of public revenue that is tied directly to the project itself.

The Commonwealth of Pennsylvania has in the past funded infrastructure and mass transit projects through such vehicles as the gasoline tax, the general fund, and some dedicated special taxes such as a sales tax.