Department of Agricultural Economics
Did You Know...?
Our Department continues to contribute to teaching, research and Extension programs that have an impact not only in the state but beyond. A past impact is the Sales Tax Collections in Nonmetropolitan Communities.
Community leaders often increase sales taxes to increase revenue, but increased taxes can also decrease retail sales. Community leaders need to know how much an increase in tax rates will increase revenue. An article published in Public Finance Review estimated the impact of sales taxes on retail sales. The results show Oklahoma communities can increase revenue by raising taxes, but the revenue increase will be less than the increase in taxes due to negative effects on retail sales. Local rates less than four percent will have little effect. Rates over four percent will reduce sales, but not enough that sales tax revenues would decrease with increased rates.
To read more about the Department’s impact here click here.