Property Value Assessment Growth Limits and Redistribution of Property Tax Payments: Evidence From Michigan
We examine the change in the distribution of property tax payments resulting from Michigan’s imposition of a property tax assessment growth cap in 1994. The cap restricts growth in property value for tax purposes to the inflation rate, for those maintaining continuous ownership. Upon sale, however, the tax base is adjusted to reflect market value. Using data from a survey conducted in 2008, we find that long-time homeowners enjoy an average reduction in effective tax rates (relative to new homeowners) of 19 percent. The cap also appears to have reduced effective property tax rates for older homeowners, and for those with higher incomes.
Volume (Year): 63 (2010)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: 529 14th Street NW Suite 750, Washington DC 20045|
Web page: https://www.ntanet.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dye, Richard F. & McMillen, Daniel P. & Merriman, David F., 2006. "Illinois' Response to Rising Residential Property Values: An Assessment Growth Cap in Cook County," National Tax Journal, National Tax Association, vol. 59(3), pages 707-716, September.
- Ferreira, Fernando, 2010.
"You can take it with you: Proposition 13 tax benefits, residential mobility, and willingness to pay for housing amenities,"
Journal of Public Economics,
Elsevier, vol. 94(9-10), pages 661-673, October.
- Fernando Ferreira, 2008. "You Can Take it With You: Proposition 13 Tax Benefits, Residential Mobility, and Willingness to Pay for Housing Amenities," Working Papers 08-15, Center for Economic Studies, U.S. Census Bureau.
- King, A Thomas, 1977. "Estimating Property Tax Capitalization: A Critical Comment," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 425-431, April.
- John Nagy, 1997. "Did Proposition 13 Affect the Mobility of California Homeowners ?," Public Finance Review, , vol. 25(1), pages 102-116, January.
- Bowman, John H., 2006. "Property Tax Policy Responses to Rapidly Rising Home Values: District of Columbia, Maryland, and Virginia," National Tax Journal, National Tax Association, vol. 59(3), pages 717-733, September.
- Skidmore, Mark, 1999. "Tax and Expenditure Limitations and the Fiscal Relationships between State and Local Governments," Public Choice, Springer, vol. 99(1-2), pages 77-102, April.
- Papke, Leslie E., 2005. "The effects of spending on test pass rates: evidence from Michigan," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 821-839, June.
- Sigelman, Lee & Zeng, Langche, 1999. "Analyzing Censored and Sample-Selected Data with Tobit and Heckit Models," Political Analysis, Cambridge University Press, vol. 8(02), pages 167-182, December.
- Yinger, John, 1982. "Capitalization and the Theory of Local Public Finance," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 917-943, October.
- Wales, T J & Wiens, E G, 1974. "Capitalization of Residential Property Taxes: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 329-333, August.
- 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..
- Dye, Richard F. & McGuire, Therese J. & McMillen, Daniel P., 2005. "Are Property Tax Limitations More Binding Over Time?," National Tax Journal, National Tax Association, vol. 58(2), pages 215-225, June.
- Reinhard, Raymond M, 1981. "Estimating Property Tax Capitalization: A Further Comment," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1251-1260, December. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:63:y:2010:i:3:p:509-37. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ann Crampton)
If references are entirely missing, you can add them using this form.