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Do Caps on Increases in Assessed Values Create a Lock-in Effect? Evidence From Florida’s Amendment One


  • Ihlanfeldt, Keith R.


The property tax savings provided by assessment caps are generally lost when homeowners move. There is, therefore, a concern that homeowners get “locked-in” to their current home. Using data from Florida, the results presented in this paper show that the lock-in effect is nontrivial in magnitude, especially for homeowners in single-family homes (in comparison to condominiums) and those located in jurisdictions with relatively low property tax rates.

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  • Ihlanfeldt, Keith R., 2011. "Do Caps on Increases in Assessed Values Create a Lock-in Effect? Evidence From Florida’s Amendment One," National Tax Journal, National Tax Association, vol. 64(1), pages 8-25, March.
  • Handle: RePEc:ntj:journl:v:64:y:2011:i:1:p:8-25

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    References listed on IDEAS

    1. 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.
    2. John Nagy, 1997. "Did Proposition 13 Affect the Mobility of California Homeowners ?," Public Finance Review, , vol. 25(1), pages 102-116, January.
    3. Chan, Sewin, 2001. "Spatial Lock-in: Do Falling House Prices Constrain Residential Mobility?," Journal of Urban Economics, Elsevier, vol. 49(3), pages 567-586, May.
    4. Quigley, John M, 1987. "Interest Rate Variations, Mortgage Prepayments and Household Mobility," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 636-643, November.
    5. Eric A. Hanushek & John M. Quigley, 1978. "An Explicit Model of Intra-Metropolitan Mobility," Land Economics, University of Wisconsin Press, vol. 54(4), pages 411-429.
    6. Nada Wasi & Michelle J. White, 2005. "Property Tax Limitations and Mobility: The Lock-in Effect of California's Proposition 13," NBER Working Papers 11108, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Cunningham, Chris & Reed, Robert R., 2013. "Negative equity and wages," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 841-849.
    2. repec:ntj:journl:v:70:y:2017:i:3:p:549-584 is not listed on IDEAS
    3. John V. Duca & Patric H. Hendershott & David C. Ling, 2017. "How Taxes and Required Returns Drove Commercial Real Estate Valuations over the Past Four Decades," National Tax Journal, National Tax Association, vol. 70(3), pages 549-584, September.
    4. John Norregaard, 2013. "Taxing Immovable Property Revenue Potential and Implementation Challenges," IMF Working Papers 13/129, International Monetary Fund.
    5. William H. Hoyt & Aaron Yelowitz, 2016. "Anticipated Property Tax Increases and the Timing of Home Sales: Evidence from Administrative Data," CESifo Working Paper Series 6264, CESifo Group Munich.

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