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Social and Geographic Inequities in the Residential Property Tax: A Review and Case Study

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  • Richard Harris
  • Michael Lehman

Abstract

Although the fact is not widely acknowledged by urban scholars, because of the way that it is administered the property tax helps to shape the social geography of metropolitan areas. Research by public finance specialists has shown that cheap housing is often overassessed, and that variations in assessment ratios (the ratio of assessed to market values) usually favour the suburbs. Sales prices and assessment data from the Hamilton, Ontario, metropolitan area for 1976, 1996, and 1999 confirm these patterns and show that they are persistent. In addition, cross-tabulations by market value and location show that geographical variations in assessment ratios are caused by the inequitable treatment of inexpensive property, not vice versa. A 1998 reassessment made the situation worse. The main difficulty in reducing tax inequities is political, not technical.

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  • Richard Harris & Michael Lehman, 2001. "Social and Geographic Inequities in the Residential Property Tax: A Review and Case Study," Environment and Planning A, , vol. 33(5), pages 881-900, May.
    • Handle: RePEc:sae:envira:v:33:y:2001:i:5:p:881-900
    DOI: 10.1068/a33128
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    References listed on IDEAS

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    1. Brian J. L. Berry & Robert S. Bednarz, 1975. "A Hedonic Model of Prices and Assessments for Single-Family Homes: Does the Assessor Follow the Market or the Market Follow the Assessor?," Land Economics, University of Wisconsin Press, vol. 51(1), pages 21-40.
    2. Mehta, Shekhar & Giertz, J. Fred, 1996. "Measuring the Performance of the Property Tax Assessment Process," National Tax Journal, National Tax Association, vol. 49(1), pages 73-85, March.
    3. Melvin V. Borland, 1990. "On the Degree of Property Tax Assessment Inequity in Complex Tax Jurisdictions," American Journal of Economics and Sociology, Wiley Blackwell, vol. 49(4), pages 431-438, October.
    4. J. S. Fuerst & Andrew Ditton, 1975. "Reducing Property Taxes: An Evaluation of a Collective Action," Land Economics, University of Wisconsin Press, vol. 51(1), pages 94-97.
    5. Mehta, Shekhar & Giertz, J. Fred, 1996. "Measuring the Performance of the Property Tax Assessment Process," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(1), pages 73-85, March.
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    Cited by:

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    2. Kathryn Furlong, 2012. "Good Water Governance without Good Urban Governance? Regulation, Service Delivery Models, and Local Government," Environment and Planning A, , vol. 44(11), pages 2721-2741, November.

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