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The role of organized groups in administrative burdens of property taxation

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  • Iuliia Shybalkina

    (University of Kentucky)

Abstract

There is a substantial body of literature regarding the effects of administrative burdens on the take-up of safety-net programs and the role of organized groups in this process. I investigate similar issues in the context of property tax assessment appeals. Disadvantaged groups spend well over the recommended 30% of their income on housing costs that include property tax, and, on top of that, assessors often overestimate lower-value properties. Appeals may provide some relief, but the process can be burdensome. Certain localities give condominium associations the right to file one joint appeal on behalf of all unit owners. I hypothesize that this rule reduces burdens for condominium units and causes them to appeal more frequently than houses, resulting in a distributive effect that depends on the local context. I present supporting evidence from two case studies in two locations: New York City, which allows joint appeals, and Allegheny County, Pennsylvania (Pittsburgh and surroundings), which does not. Thus, while administrative burdens can span diverse contexts, engaging a third party to assist potential beneficiaries consistently increases the take-up.

Suggested Citation

  • Iuliia Shybalkina, 2021. "The role of organized groups in administrative burdens of property taxation," Journal of Behavioral Public Administration, Center for Experimental and Behavioral Public Administration, vol. 4(1).
  • Handle: RePEc:bpd:articl:v:4:y:2021:i:1:jbpa.41.179
    DOI: 10.30636/jbpa.41.179
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    References listed on IDEAS

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    More about this item

    Keywords

    Administrative appeal; Administrative burden; Organized group; Redistribution; Taxation;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Z00 - Other Special Topics - - General - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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