IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v24y2010i1p3-12.html
   My bibliography  Save this article

Property Tax Exportation and Its Effects on Local Business Establishments: The Case of Massachusetts Municipalities

Author

Listed:
  • Yonghong Wu

    (University of Illinois at Chicago, Chicago, IL, USA, yonghong@uic.edu)

Abstract

This empirical study describes property tax exportation to business properties in Massachusetts and investigates its effects on the location of private establishments. The author uses panel econometric techniques on 351 incorporated municipalities from 2001 to 2006. The results suggest that the level and relative share of property tax levied on businesses have a negative impact on their establishments. The rise in the share of tax levy on businesses by 50 percentage points relative to their share of assessed value could result in 5 fewer business establishments and 60 fewer private goods-producing industry jobs. Preliminary analysis also indicates that such a tax-exporting policy may be desirable from a revenue perspective, but the substantial loss in business activity should be considered.

Suggested Citation

  • Yonghong Wu, 2010. "Property Tax Exportation and Its Effects on Local Business Establishments: The Case of Massachusetts Municipalities," Economic Development Quarterly, , vol. 24(1), pages 3-12, February.
  • Handle: RePEc:sae:ecdequ:v:24:y:2010:i:1:p:3-12
    as

    Download full text from publisher

    File URL: http://edq.sagepub.com/content/24/1/3.abstract
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Charles Swenson, 2017. "Empirical Evidence on the Impact of City Taxes," Applied Economics and Finance, Redfame publishing, vol. 4(2), pages 65-75, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:24:y:2010:i:1:p:3-12. 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: (SAGE Publications). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.