Abstract
Local governments with volatile revenues face a variety of managerial challenges. This study examines the impact of prepayments and late payments on sales tax revenue volatility (STRV). Prepayments and late payments have the potential of disrupting the predictability of sales tax revenue. Using a sample of 1,075 cities in Texas over a 15-year period (1998 to 2013), the study finds that late payments impact STRV while early payments do not.
Notes
* This study investigates revenue volatility and not the determinants of tax compliance. While tax compliance is important, it is an ancillary concern to the study being provided.
Additional information
Notes on contributors
Michael Overton
Michael Overton is an Assistant Professor of Political Science in the Department of Politics and Philosophy at the University of Idaho, USA.
Julius A. Nukpezah
Julius Nukpezah is an Assistant Professor of Public Policy and Administration in the Department of Political Science and Public Administration at the Mississippi State University, USA.
Orkhan Ismayilov
Orkhan Ismayilov is completing his PhD in public administration and management from the University of North Texas, USA.