Alternative Sources of Local Tax Revenue in Appalachia

An additional local sales tax or a surtax on State income taxes as an alternative source of revenue for counties would, to a large extent, continue the situation that exists in Appalachia. Although a tax using a combination of the above alternatives would be somewhat more successful, it would still not be satisfactory in reducing the tax burden on real property. Variations in the sales tax base and the income tax base would also result in wide variations in any alternative tax. A few counties could raise a given amount of revenue with a relatively low sales tax or a surtax, while many counties would require a relatively high tax to raise an equivalent amount. This variation between taxing units could be modified if any of these alternatives were levied on a multicounty basis—such as the various State-created planning districts.