This report provides detail on the construction of an index of tax and expenditure limitations (TELs) for the 50 US states for the time-frame 1969 to 2005. Separate annual indices are constructed for TELs on state and on local governments. The goal of constructing the indices is to provide a means to test a range of hypotheses concerning the impact of TELs on economic performance and on state and local government fiscal policies. This report documents the construction of the index. The data are provided in Excel spreadsheets so that others may construct alternative indices.