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Market Value Assessment and Idiosyncratic Tax-Price Risk: Understanding the Consequences of Alternative Definitions of the Property Tax Base
journal contribution
posted on 2013-11-26, 00:00 authored by Nathan B. AndersonI develop a framework, based on tax price, that measures the distributional consequences
of any alternative property tax base definition. Using administrative data, I show that defining
tax base as market value produces large amounts of idiosyncratic tax-price risk. I show that an
assessment limit can reduce the tax-price risk generated by the market value definition and that
the benefits of the assessment limit vary over time and accrue to a majority of taxpayers. In addition,
I argue that the tax-price framework is appropriate for estimating behavioral responses
to alternative tax base definitions.
History
Publisher Statement
NOTICE: This is the author’s version of a work that was accepted for publication in Regional Science and Urban Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Regional Science and Urban Economics, Vol 42, Issue 4, (2012) DOI: 10.1016/j.regsciurbeco.2012.01.002Publisher
ElsevierLanguage
- en_US
issn
0166-0462Issue date
2012-07-01Usage metrics
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