No relief: Tax prices and property tax burdens
AbstractIn 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 InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 41 (2011)
Issue (Month): 6 ()
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Web page: http://www.elsevier.com/locate/regec
Tax price; Property tax;
Find related papers by JEL classification:
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
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