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Download fileMarket 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.