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Taxing Property Transactions versus Taxing Property Ownership

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Author Info
Terri A. Sexton ()
Abstract

Few studies have examined the use and effects of real property transfer taxes, especially in the U.S. This paper examines the variety of transfer tax programs currently in use in the U.S. and compares them to property taxes in terms of equity, efficiency, and revenue potential and stability. The next section examines the widespread use of property transfer taxes in the U.S. and other countries and compares them in terms of tax rates, tax base, tax authority, and use of revenues. In Section 3 we discuss the distributional impact of property transfer taxes including who ultimately bears the burden of the tax and whether the tax is regressive or progressive with respect to income. Section 4 looks at the efficiency effects of transfer taxes including the excess burden of the tax and its effect on household mobility. Section 5 examines the revenue potential of transfer taxes and their volatility, and Section 6 summarizes and concludes.

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File URL: http://aysps.gsu.edu/isp/files/ispwp0820.pdf
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Publisher Info
Paper provided by International Studies Program, Andrew Young School of Policy Studies, Georgia State University in its series International Studies Program Working Paper Series, at AYSPS, GSU with number paper0820.

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Length: 44 pages
Date of creation: 01 Dec 2008
Date of revision:
Handle: RePEc:ays:ispwps:paper0820

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Related research
Keywords: Property Transactions; Property Ownership; proporty tax;

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  1. O'Sullivan Arthur & Sexton Terri A. & Sheffrin Steven M., 1995. "Property Taxes, Mobility, and Home Ownership," Journal of Urban Economics, Elsevier, vol. 37(1), pages 107-129, January. [Downloadable!] (restricted)
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This page was last updated on 2009-11-22.


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