AN ANALYSIS OF THE TRANSFER OF FUNDS FROM WEAK RETAIL COUNTIES TO STRONG RETAIL COUNTIES IN IOWA VIA LOCAL OPTION SALES TAXES

Abstract

This study analyzes the transfer of tax dollars from "retail poor" to "retail rich" counties via local option sales taxes in Iowa. These taxes may potentially transfer more than one billion dollars from rural to urban counties over the next ten years. The implications for economic development policy are discussed.Public Economics,