Fairness in tax policy is a widely shared goal among scholars, policymakers, and the public, yet equity remains a contested concept. This study examines interjurisdictional equity in the context of local option taxes (LOTs), which have become an increasingly significant revenue source for local governments. While much of the existing research on LOTs focuses on competition, rate setting, and adoption, this paper considers how different dimensions of equity intersect in shaping their implementation and effects and presents an analytical framework that can be applied to understanding interjurisdictional equity more holistically. Using a North Carolina local sales tax revenue policy designed to distribute revenues more equitably, this study analyzes county-level data from 2013 to 2019 to assess the policy's impact across multiple equity measures. The findings highlight complementary and conflicting equity considerations, underscoring the need for policymakers to clearly define their equity objectives to achieve desired policy outcomes. This research contributes to a more nuanced understanding of fairness in local public finance.
