University of Cincinnati
01/30/2026 | Press release | Distributed by Public on 01/30/2026 10:46
Local business benefits from city services
Local business benefits from city services
UC study offers a closer look at the impact of tax renewals on commercial properties
4 minute read January 30, 2026 Share on facebook Share on Twitter Share on LinkedIn Share on Reddit Print StoryLike
It's common to wonder as tax season ramps up: Are taxes too high?
According to a new study by University of Cincinnati economics professor David Brasington, the answer is no, at least when it comes to Ohio's city service taxes. These taxes go toward local services such as funds for the fire department, road repair and park upkeep.
"It seems like public services are not over-provided at the local level in Ohio," Brasington said. "Because good things seem to happen when people renew these taxes instead of cut them."
Brasington is the James C. and Caroline Kautz Chair in Political Economy and economics professor at Lindner College of Business. Photo/University of Cincinnati
Brasington, PhD, published a new study in Regional Science and Urban Economics called "Effect of local government taxes and spending on the redevelopment of commercial property."
"What we're doing is comparing otherwise similar communities, where some of them voted to cut taxes and services, and some voted to renew them," he said. "And we see if there's a difference in the amount of redevelopment of commercial property in subsequent years. And we did find a significant difference."
The tax renewals his team looked at covered a broad range of city services, from bus drivers' salaries to mulch for public parks. When a community votes to cut taxes, it causes a cut in these local services.
Brasington explained that the results were straightforward. "If a community wants to preserve its commercial tax base, it's better to renew public services," he said, adding that the point holds true even for municipalities that are struggling financially.
"A struggling city might be tempted to cut taxes either because of the short-term break or because people think lower taxes might draw business," Brasington said. But the data shows the opposite: Businesses actually do better when they are in areas with good, solid public services.
"On average, if you want redevelopment in your community, it's better to renew your local taxes," Brasington said. He added that this goes against the preconceived notion that businesses and commercial properties have a greater chance of success when taxes are lower.
There are a few nuances to these results. The redevelopment observed was mainly driven by service-oriented cities, not manufacturing ones. And the data only gives what Brasington calls a "glimmer of hope" to communities facing population decline, instead of hard evidence pointing toward the benefits of tax renewals.
"For cities that are declining, the evidence is a bit more flimsy, but it at least is something that could spur some redevelopment," Brasington said.
Bearcats for life
One of the study's authors, Evan Carson, started working on the paper while at UC as one of Brasington's research assistants. Carson is currently a doctoral candidate at the University of Illinois Chicago, but he earned his undergraduate degree in economics at UC's Carl H. Lindner College of Business.
"It's really rare to have an undergraduate on a publication," Brasington said. "It didn't publish until after he graduated, but he's the one who came up with the set of results that was the core of this study."
Ohio is our home
The University of Cincinnati drives Ohio's economy with a $22.7 billion statewide impact, supporting over 125,000 jobs. Through innovation, research and workforce development, UC fuels economic growth and enhances quality of life across the state.
Featured image at top of road workers setting concrete. Photo/iStock/Katarzyna Bialasiewicz
Related Stories
1
Local business benefits from city services
January 30, 2026
A new study from professor Brasington shows that renewing local taxes for city services actually benefits local businesses, despite preconceived notions that taxes are inherently bad for business. Published in Regional Science and Urban Economics.
2
WVXU: UC study examines hesitancy to treat childhood anxiety with medication
February 3, 2023
The University of Cincinnati's Jeffrey Strawn and Jeffrey Mills and Cincinnati Children's Hospital Medical Center's Angela Scott joined WVXU's Cincinnati Edition to discuss a recent study examining hesitancy to treat childhood anxiety with medication.
3
UC economists weigh in on impact of Ohio's Child Care Cred Program
December 2, 2025
In September, Governor Mike DeWine announced the start of the $10 million Child Care Cred Program. It's available to families making between 200% and 400% of federal poverty guidelines, according to reporting from the Ohio Capital Journal.
University of Cincinnati published this content on January 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on January 30, 2026 at 16:46 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]