THE INCIDENCE OF THE PROPERTY TAX ON HOMEOWNERS: Evidence from the Panel Study of Income Dynamics

Publisher Website
Google Scholar
Abstract
The incidence of the property tax on owner-occupied housing has been shown to be a function of the income elasticity of housing demand and the elasticity of effective tax rates with respect to housing value. Based upon assumed and estimated values of these two parameters, implications have been drawn in recent literature regarding the relationship between property taxes paid and the level of income. After critically reviewing the literature on the values of these elasticities, this study presents estimates of these elasticities and direct evidence on the relationship between property taxes and income obtained from the Panel Study of Income Dynamics. Equations are estimated for the nation, for twelve city size and region groups, and for different income classes. Results indicate that the property tax on homeowners is progressive at the national level, and generally proportional at the local level.

This publication has 0 references indexed in Scilit: