The key factor to remember is that additional tax revenue always pays for the lowest-priority item that would not otherwise be funded.
That’s why it’s a good idea not to focus on “what the counties actually intend to use the revenue for.” County officials will say the additional tax revenue is destined to pay for high-priority items such as new schools or library upgrades or law-enforcement projects. They probably believe that what they’re saying is true.
But they’re wrong. New revenue will actually pay for low-priority items that would face the budget ax under more disciplined fiscal management.
If your county manages your tax dollars wisely, then a new revenue stream might be justified. It’s hard to argue that this scenario could be true for counties that offer targeted tax breaks, keep excessive fund balances, and continually increase their annual operating budgets at a rate that exceeds the combined rate of inflation and population growth.
