September 29, 2020
Sales and use taxes can be passed by legislatures or by popular vote. Some jurisdictions allocate a certain percentage of local or state sales taxes to parks, while others pass specific sales tax measures dedicated parks and Special Park Districts. With any new tax measures, additional legislation might be required to prevent tax revenue from simply replacing general fund dollars—a zero-sum game.
General sales taxes apply to a broad base of goods. Substantial revenue, therefore, can be generated with a relatively low tax rate, keeping the per-household burden low. Sales taxes are regressive, however, and have a greater impact on low-earners, particularly when applied to essential goods, such as food and clothing. So called “sin taxes,” are a subset of sales taxes imposed on commodities or activities that are perceived to be unhealthy or have a negative societal effect±—cigarettes, gambling and alcohol for instance. Critics contend that these taxes also disproportionately affect low-income families.