Taxes and the location decision of manufacturing establishments

摘要

This study examines the impact of local tax differentials on the location of manufacturing firms. The study improves on previous substate location/growth studies in constructing a tax measure that better reflects the tax burden that firms are likely to face. The results of the study indicate that firms tend to avoid counties that have relatively high property tax rates. These findings suggest that tax relief incentives can be an important component of a county's industrial recruitment program.