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Property Tax Capitalization within a National Historic District versus Property Tax Capitalization outside that National Historic District: Another Application of the Tiebout Hypothesis

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  • Cebula, Richard
  • Foley, Maggie
  • Houmes, Robert

Abstract

This study has two objectives. First, it seeks to apply a hedonic pricing model to determine whether property taxes have been capitalized into the prices of single family homes located within in the Savannah Historic Landmark District in Savannah, Georgia. A total of 593 home sales over the 2000-2005 period are considered, with the housing prices and the property tax expressed in 2005 dollars. Second, this study seeks to apply that very same model to prices of some 1908 single family homes within the metropolitan Savannah area but outside the Savannah Historic Landmark District. Estimating the model in semi-log form, after allowing for a variety of housing characteristics, reveals that the natural log of the real sales price of single-family houses within the Savannah Historic Landmark District as well as those outside the Savannah Historic Landmark District were in fact negatively affected by the city and county property tax level.

Suggested Citation

  • Cebula, Richard & Foley, Maggie & Houmes, Robert, 2010. "Property Tax Capitalization within a National Historic District versus Property Tax Capitalization outside that National Historic District: Another Application of the Tiebout Hypothesis," MPRA Paper 60008, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60008
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    File URL: https://mpra.ub.uni-muenchen.de/60008/1/MPRA_paper_60008.pdf
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    References listed on IDEAS

    as
    1. Donald A. Coffin, 1989. "The Impact of Historical Districts on Residential Property Values," Eastern Economic Journal, Eastern Economic Association, vol. 15(3), pages 221-228, Jul-Sep.
    2. Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 957-971, Nov./Dec..
    3. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    4. repec:rre:publsh:v:39:y:2009:i:1:p:9-22 is not listed on IDEAS
    5. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    6. N. Edward Coulson & Michael L. Lahr, 2005. "Gracing the Land of Elvis and Beale Street: Historic Designation and Property Values in Memphis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 33(3), pages 487-507, September.
    7. Deborah Ann Ford, 1989. "The Effect of Historic District Designation on Single‐Family Home Prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(3), pages 353-362, September.
    8. Katherine Kiel & Melissa Boyle, 2001. "A Survey of House Price Hedonic Studies of the Impact of Environmental Externalities," Working Papers 0111, College of the Holy Cross, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Yao, Tao, 2015. "房产税制度创新路径研究：基于财富公平分配目标 [Path of the Property Taxes Institution Innovation: Based on the Objective of Equitable Distribution of Wealth]," MPRA Paper 61172, University Library of Munich, Germany.

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    More about this item

    Keywords

    property tax capitalization; housing prices; semi-log model;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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