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No Relief: Tax Prices and Property Tax Burdens

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journal contribution
posted on 06.03.2012 by Nathan B. Anderson
In 2001 the state of Minnesota reduced the weights assigned to non-residential property in local property tax bases, which increased residents’ price of raising property tax revenue and affords the opportunity to identify the tax price elasticity of local tax revenues and expenditures. Results suggest that a one percent increase in residents’ tax prices is associated with a one percent decrease in per-resident property tax revenues as well as a substantial reduction in capital expenditures. The unit price elasticity of property tax revenues suggests that popular tax relief programs that reduce residents’ tax prices – homestead exemptions – do not reduce homeowners’ tax payments.

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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 41, Issue 6, NOV 2011 DOI: 10.1016/j.regsciurbeco.2011.03.014 The original publication is available at www.elsevier.com.

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Elsevier

Language

en_US

issn

0166-0462

Issue date

01/11/2011

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