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The effect of property taxes on businesses: Evidence from a dynamic regression discontinuity approach

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  • Enami, Ali
  • Reynolds, C. Lockwood
  • Rohlin, Shawn M.

Abstract

We employ a dynamic regression discontinuity design comparing business outcomes in areas that passed additional school property taxes to business outcomes in areas that failed to do so. On average, these referenda increase local property taxes by approximately 8 percent. We find little evidence that passage of a property tax referendum influences the total number of establishments in the district in the following years. Further, there is little evidence that property taxes affect total establishment births or deaths. Heterogeneity analysis does not find differences across various measures of firm exposure to property taxes.

Suggested Citation

  • Enami, Ali & Reynolds, C. Lockwood & Rohlin, Shawn M., 2023. "The effect of property taxes on businesses: Evidence from a dynamic regression discontinuity approach," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:regeco:v:100:y:2023:i:c:s0166046223000303
    DOI: 10.1016/j.regsciurbeco.2023.103895
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    More about this item

    Keywords

    Property taxation; Local business; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

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