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Political Economy of the Parcel Tax in California School Districts

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  • Soomi Lee

Abstract

This article examines the effect of home price distribution on the likelihood of parcel tax adoption in California school districts. A parcel tax is a regressive tax imposed as the same amount per unit of property regardless of property values and requires a two-thirds supermajority vote to be adopted. Despite the growing role that local parcel taxes have in funding public education, it has not been fully understood how their regressive nature influences adoption. I argue that because the regressive tax imposes different marginal property tax rates for voters, the distribution of home prices within a district determines the likelihood of parcel tax adoption. Using the Heckman selection models with California school district–level data, I find that a large gap in home values within a district significantly lowers the likelihood of parcel tax adoption.

Suggested Citation

  • Soomi Lee, 2019. "Political Economy of the Parcel Tax in California School Districts," Public Finance Review, , vol. 47(5), pages 864-892, September.
    • Handle: RePEc:sae:pubfin:v:47:y:2019:i:5:p:864-892
    DOI: 10.1177/1091142119847674
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    References listed on IDEAS

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    4. Bree J. Lang & Jon Sonstelie, 2015. "The Parcel Tax as a Source of Local Revenue for California Public Schools," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(3), pages 545-572, September.
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    Cited by:

    1. Jones, Daniel B. & Zhan, Crystal, 2020. "Ethnic diversity and citizens’ support for local public good provision: Evidence from California parcel tax elections," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 108-130.

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