Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal Health
The outbreak of COVID—19 has raised considerable alarm about public health and safety. The response to the outbreak, however, has also brought concern regarding its impact on local governments in the United States. Local governments have been a primary respondent in the fight against the COVID—19 di...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Midwest Public Affairs Conference
2020-12-01
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| Series: | Journal of Public and Nonprofit Affairs |
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| Online Access: | http://jpna.org/index.php/jpna/article/view/468 |
| _version_ | 1819100273045405696 |
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| author | Bruce D. McDonald, III Sarah E. Larson |
| author_facet | Bruce D. McDonald, III Sarah E. Larson |
| author_sort | Bruce D. McDonald, III |
| collection | DOAJ |
| description | The outbreak of COVID—19 has raised considerable alarm about public health and safety. The response to the outbreak, however, has also brought concern regarding its impact on local governments in the United States. Local governments have been a primary respondent in the fight against the COVID—19 disease, but the response has also reduced income from a key source of revenue, sales tax. Using North Carolina counties as a case study, we explore the shock to sales and use tax revenue faced by local governments from COVID—19; we, then, estimate its impact on county fiscal health. Our results show that while many local governments were financially struggling before the outbreak, the drop in sales tax revenue severely threatens their ability to provide continued response to the virus as well as their ability to remain solvent. |
| first_indexed | 2024-12-22T01:00:09Z |
| format | Article |
| id | doaj.art-b27012e565b742af9d238adf3a156c3f |
| institution | Directory Open Access Journal |
| issn | 2381-3717 |
| language | English |
| last_indexed | 2024-12-22T01:00:09Z |
| publishDate | 2020-12-01 |
| publisher | Midwest Public Affairs Conference |
| record_format | Article |
| series | Journal of Public and Nonprofit Affairs |
| spelling | doaj.art-b27012e565b742af9d238adf3a156c3f2022-12-21T18:44:14ZengMidwest Public Affairs ConferenceJournal of Public and Nonprofit Affairs2381-37172020-12-016337740010.20899/jpna.6.3.377-400197Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal HealthBruce D. McDonald, III0Sarah E. Larson1North Carolina State UniversityUniversity of Central FloridaThe outbreak of COVID—19 has raised considerable alarm about public health and safety. The response to the outbreak, however, has also brought concern regarding its impact on local governments in the United States. Local governments have been a primary respondent in the fight against the COVID—19 disease, but the response has also reduced income from a key source of revenue, sales tax. Using North Carolina counties as a case study, we explore the shock to sales and use tax revenue faced by local governments from COVID—19; we, then, estimate its impact on county fiscal health. Our results show that while many local governments were financially struggling before the outbreak, the drop in sales tax revenue severely threatens their ability to provide continued response to the virus as well as their ability to remain solvent.http://jpna.org/index.php/jpna/article/view/468covid-19sales taxfiscal healthcounty government |
| spellingShingle | Bruce D. McDonald, III Sarah E. Larson Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal Health Journal of Public and Nonprofit Affairs covid-19 sales tax fiscal health county government |
| title | Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal Health |
| title_full | Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal Health |
| title_fullStr | Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal Health |
| title_full_unstemmed | Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal Health |
| title_short | Implications of the Coronavirus on Sales Tax Revenue and Local Government Fiscal Health |
| title_sort | implications of the coronavirus on sales tax revenue and local government fiscal health |
| topic | covid-19 sales tax fiscal health county government |
| url | http://jpna.org/index.php/jpna/article/view/468 |
| work_keys_str_mv | AT brucedmcdonaldiii implicationsofthecoronavirusonsalestaxrevenueandlocalgovernmentfiscalhealth AT sarahelarson implicationsofthecoronavirusonsalestaxrevenueandlocalgovernmentfiscalhealth |