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No relief: Tax prices and property tax burdens

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  • Anderson, Nathan B.

Abstract

In 2001 the state of Minnesota reduced the weights assigned to non-residential property in local property tax bases, which increased residents' price of raising property tax revenue and affords the opportunity to identify the tax price elasticity of local tax revenues and expenditures. Results suggest that a one percent increase in residents' tax prices is associated with a one percent decrease in per-resident property tax revenues as well as a substantial reduction in capital expenditures. The unit price elasticity of property tax revenues suggests that popular tax relief programs that reduce residents' tax prices – homestead exemptions – do not reduce homeowners' tax payments.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 41 (2011)
Issue (Month): 6 ()
Pages: 537-549

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Handle: RePEc:eee:regeco:v:41:y:2011:i:6:p:537-549

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Web page: http://www.elsevier.com/locate/regec

Related research

Keywords: Tax price; Property tax;

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References

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Citations

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Cited by:
  1. Anderson, Nathan B., 2012. "Market value assessment and idiosyncratic tax-price risk: Understanding the consequences of alternative definitions of the property tax base," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 545-560.
  2. Johnson, Erik & Walsh, Randall, 2013. "The effect of property taxes on vacation home growth rates: Evidence from Michigan," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 740-750.

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