IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v53y2025i6p1178-1199.html

Capitalization of state tax rates in housing values at state borders, 2000–2017

Author

Listed:
  • Yulong Chen
  • Liyuan Ma
  • Peter F. Orazem

Abstract

We derive a model that demonstrates the interrelationship between housing prices, tax rates, government services, and naturally occurring amenities between adjacent markets. The model is tested against county‐level data at state borders using US Census housing price data from 2000 to 2017. The data show that property taxes will lower housing prices at state borders by an average of $197 per mill rate or $3326 in 2017 prices. The capitalization rate of property taxes at state borders is 14.4%. The largest tax‐induced gap in average housing prices is at the New York–Connecticut border.

Suggested Citation

  • Yulong Chen & Liyuan Ma & Peter F. Orazem, 2025. "Capitalization of state tax rates in housing values at state borders, 2000–2017," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 53(6), pages 1178-1199, November.
    • Handle: RePEc:bla:reesec:v:53:y:2025:i:6:p:1178-1199
    DOI: 10.1111/1540-6229.12533
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1540-6229.12533
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-6229.12533?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reesec:v:53:y:2025:i:6:p:1178-1199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/areueea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.