Examining the Logic Behind the Self-Help, Self-Taxing Movement: Business Improvement District Formation

17 Pages Posted: 15 Dec 2009

See all articles by Stephen B. Billings

Stephen B. Billings

University of Colorado - Boulder

Suzanne LeLand

University of North Carolina (UNC) at Charlotte

Date Written: 2009

Abstract

An institution that has shown great promise in addressing the revitalization of declining central cities is Business Improvement Districts (BIDs). These private governments provide supplemental municipal services such as sanitation, security, and marketing to independent businesses in underserved commercial areas. By 1999, 44 U.S. states had legislation that enables and dictates the formation process and structure of BIDs. The surprising element of this legislation is the wide variation in approval needed to form a BID over a proposed geographical area. Some states require as little as 20 percent approval of proposed members and others as much as 75 percent approval to allow formation of a BID. This variation in state statutes likely influences the use of BIDs. Results highlight that relatively easier state enabled collective action positively impacts the creation of BIDs, the limited effects of tax expenditure limitations on the formation of BIDs and the positive impacts that new development has on the number of BIDs per state.

Suggested Citation

Billings, Stephen B. and LELAND, SUZANNE, Examining the Logic Behind the Self-Help, Self-Taxing Movement: Business Improvement District Formation (2009). Public Budgeting & Finance, Vol. 29, Issue 4, pp. 108-124, Winter 2009. Available at SSRN: https://ssrn.com/abstract=1521825 or http://dx.doi.org/10.1111/j.1540-5850.2009.00945.x

Stephen B. Billings (Contact Author)

University of Colorado - Boulder ( email )

Leeds School of Business
Koelbel Building
Boulder, CO US 80309
United States

SUZANNE LELAND

University of North Carolina (UNC) at Charlotte

9201 University City Boulevard
Charlotte, NC 28223
United States

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