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Property Value Assessment Growth Limits, Tax Base Erosion and Regional In-Migration

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  • Skidmore, Mark

    (Michigan State University)

  • Tosun, Mehmet S.

    (University of Nevada, Reno)

Abstract

In 1994 a limit on the growth of property values for tax purposes was imposed in Michigan. One consequence of the newly imposed assessment growth cap was an emerging differential in tax prices between potential new property owners and long-time property owners. The purpose of this paper is to examine the impact of this growing tax price differential on migration patterns. Using county level data on migration activity over the 1994-2006 period, we present evidence that differential tax prices resulting from the assessment growth cap have reduced in-migration.

Suggested Citation

  • Skidmore, Mark & Tosun, Mehmet S., 2010. "Property Value Assessment Growth Limits, Tax Base Erosion and Regional In-Migration," IZA Discussion Papers 4906, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4906
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    Cited by:

    1. Amitrajeet A. Batabyal & Hamid Beladi, 2014. "Innovation Driven Economic Growth in Multiple Regions and Taxation," International Regional Science Review, , vol. 37(4), pages 459-472, October.
    2. Nalitra Thaiprasert & Dagney Faulk & Michael J. Hicks, 2013. "A Regional Computable General Equilibrium Analysis of Property Tax Rate Caps and a Sales Tax Rate Increase in Indiana," Public Finance Review, , vol. 41(4), pages 446-472, July.
    3. Timothy R. Hodge & Mark Skidmore & Gary Sands & Daniel McMillen, 2015. "Tax Base Erosion and Inequity from Michigan’s Assessment Growth Limit," Public Finance Review, , vol. 43(5), pages 636-660, September.
    4. Tom Downes & Kieran M. Killeen, 2014. "So Slow to Change: The Limited Growth of Nontax Revenues in Public Education Finance, 1991–2010," Education Finance and Policy, MIT Press, vol. 9(4), pages 567-599, October.
    5. Mark W. Nichols & Mehmet Serkan Tosun & Jingjing Yang, 2015. "The Fiscal Impact of Legalized Casino Gambling," Public Finance Review, , vol. 43(6), pages 739-761, November.
    6. Timothy R. Hodge & Mark Skidmore & Gary Sands & Daniel McMillen, 2013. "Tax Base Erosion and Inequity from Michigan's Assessment Growth Limit: The Case of Detroit," CESifo Working Paper Series 4098, CESifo.
    7. Jason Shumberger & Akheil Singla, 2022. "Are tax and expenditure limitations constraining institutions or institutionally irrelevant? Evidence from Minnesota," Public Budgeting & Finance, Wiley Blackwell, vol. 42(4), pages 3-33, December.
    8. Mintz, Mordekhay & Portnov, Boris A., 2023. "Social and environmental factors affecting the amount of property taxes collected by local authorities in Israel," Land Use Policy, Elsevier, vol. 133(C).

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    More about this item

    Keywords

    regional migration; property tax; tax base erosion; Michigan;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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