Fiscal Illusion From Property Reassessment? An Empirical Test of the Residual View
The property tax rate, according to the residual view, is simply the ratio of levies over total assessed values, so that growth in property values is irrelevant to the revenue raised. Critics of this view claim instead that fiscal illusion allows policymakers to take advantage of increased assessed values to raise additional revenue by not fully reducing the tax rate. Using 2000–2008 data from Virginia cities and counties, this paper tests the competing claims by studying a natural experiment in the timing of mass reappraisals. Our findings provide partial support for the fiscal illusion critique of the residual view.
Volume (Year): 66 (2013)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: 529 14th Street NW Suite 750, Washington DC 20045|
Web page: https://www.ntanet.org/
More information through EDIRC
References listed on IDEAS
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.:
- Doerner, William M. & Ihlanfeldt, Keith R., 2011. "House prices and city revenues," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 332-342, July.
- Bloom, Howard S. & Ladd, Helen F., 1982. "Property tax revaluation and tax levy growth," Journal of Urban Economics, Elsevier, vol. 11(1), pages 73-84, January.
- Lind, Jo Thori, 2003.
"Fractionalization and the size of government,"
21/2003, Oslo University, Department of Economics.
- Byron F. Lutz & Raven S. Molloy & Hui Shan, 2010.
"The housing crisis and state and local government tax revenue: five channels,"
Finance and Economics Discussion Series
2010-49, Board of Governors of the Federal Reserve System (U.S.).
- Lutz, Byron & Molloy, Raven & Shan, Hui, 2011. "The housing crisis and state and local government tax revenue: Five channels," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 306-319, July.
- Hamilton, Bruce W., 1983. "The flypaper effect and other anomalies," Journal of Public Economics, Elsevier, vol. 22(3), pages 347-361, December.
- Melville L. McMillan & W. Robert Wilson & Louise M. Arthur, 1981. "The Publicness of Local Public Goods: Evidence from Ontario Municipalities," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 596-608, November.
- John L. Mikesell, 1980. "Property Tax Reassessment Cycles: Significance for Uniformity and Effective Rates," Public Finance Review, SAGE Publishing, vol. 8(1), pages 23-37, January.
- Ladd, Helen F., 1991. "Property tax revaluation and tax levy growth revisited," Journal of Urban Economics, Elsevier, vol. 30(1), pages 83-99, July.
- John H. Y. Edwards, 1986. "A Note on the Publicness of Local Goods: Evidence from New York State Municipalities," Canadian Journal of Economics, Canadian Economics Association, vol. 19(3), pages 568-573, August.
- Fisher, Ronald C., 1982. "Income and grant effects on local expenditure: The flypaper effect and other difficulties," Journal of Urban Economics, Elsevier, vol. 12(3), pages 324-345, November.
- Byron F. Lutz, 2008. "The connection between house price appreciation and property tax revenues," Finance and Economics Discussion Series 2008-48, Board of Governors of the Federal Reserve System (U.S.).
- Stine, William F., 2010. "Estimating the Determinants of Property Reassessment Duration: An Empirical Study of Pennsylvania Counties," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2).
- Nicholas Bardsley & Robin Cubitt & Graham Loomes & Peter Moffatt & Chris Starmer & Robert Sugden, 2009. "Introduction," Introductory Chapters, in: Experimental Economics: Rethinking the Rules Princeton University Press.
- J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:66:y:2013:i:1:p:7-32. 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: (A. Sinan Unur)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.