The study has important policy implications. TELs are often seen as a necessary means to protect the general public from the setting of both taxing and spending levels higher than those the public actually prefers and, accordingly, to promote political accountability in government (Frug 1980; Brunori 2003). However, when imposed by the state government on its local jurisdictions, this fiscal institution may hinder local political autonomy in terms of taxing authorities. Local governments are considered the most efficient providers of certain public services. Supporters of localism claim that since local governments are closer to people, they can better reflect citizen desires and encourage them to participate in public affairs, thus, promoting democratic values and practices (Frug 1980; Brunori 2003). The effects of TELs on municipal revenue may further discussion on the topic of intergovernmental fiscal relations.