Taxation and citizen choice: The effect of a county charter on property taxes.

As saliency of the tax burden increases, the preference for a lower burden increases, but most counties are restricted by the state from adopting new taxes or changing the existing rates. Some states allow counties to adopt a charter, freeing them from state control. Using a panel of Florida counties from 1980 to 2017, we explore whether citizens act to reduce their property tax once a charter is passed. Citizens act against their preferences not by lowering burden but rather by increasing it in the case of debt service, suggesting citizens are maximizing their optimal tax burden in exchange for services. Applications For Practice: The passage of a charter impacts the county's fiscal policy space.Citizens did not lower their total millage and operating millage rates after the passage of a charter.The presence of a charter was tied to increases in the tax burden of debt service.Citizens are not choosing to maximize their income by reducing their burden, but rather they are adjusting or expanding the public services provided by a county government. [ABSTRACT FROM AUTHOR]