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Voters Hold the Key: Lock-in, Mobility and the Portability of Property Tax Exemptions

Author

Listed:
  • Ron Cheung

    (Department of Economics, Florida State University)

  • Chris Cunningham

    (Federal Reserve Bank of Atlanta)

Abstract

We examine support for a recent and novel Florida referendum to allow home owners with existing assessment caps to “port” their exemption to a new residence. Employing a rich dataset of all Florida real property, census-block data and precinct level voting results, we find that support for the law change was greater in high-mobility and high exemption precincts. Support was also greater in cities with more out-of-state migration or containing more second homes. Within cities, a precinct’s mobility relative to the rest of the city was more predictive suggesting that voters were savvy to the tax-share implications of the amendment.

Suggested Citation

  • Ron Cheung & Chris Cunningham, 2009. "Voters Hold the Key: Lock-in, Mobility and the Portability of Property Tax Exemptions," Working Papers wp2009_03_01, Department of Economics, Florida State University.
    • Handle: RePEc:fsu:wpaper:wp2009_03_01
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    File URL: https://coss.fsu.edu/econpapers/wpaper/wp2009_03_01.pdf
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    References listed on IDEAS

    as
    1. repec:hrv:faseco:4553034 is not listed on IDEAS
    2. Dye, Richard F. & McMillen, Daniel P. & Merriman, David F., 2006. "Illinois' Response to Rising Residential Property Values: An Assessment Growth Cap in Cook County," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(3), pages 707-716, September.
    3. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Limiting Property Tax Assessments to Slow Gentrification
      by Real Estate Research in Real Estate Research on 2014-03-27 18:22:14

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    More about this item

    Keywords

    tax limitations; property tax; assessment cap; referendum; voting; lock-in; mobility;
    All these keywords.

    JEL classification:

    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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