Regional analysis of property taxation, education finance reform, and property value growth

Skidmore, Mark; Reese, Laura A.; Kang, Sung Hoon

doi:10.1016/j.regsciurbeco.2011.10.008

Cited by 17 publications

(29 citation statements)

References 26 publications

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“…As we discuss in greater detail later, mobile agents with different sets of preferences make locational decisions based on their tax/service needs/preferences such that the property values of various property classes likely respond differently to changes in taxes and school spending. This work extends a recent article by Skidmore, Reese and Kang () who examine how changing taxes and school spending affects overall property value growth in southeast Michigan. The focus of this work is to determine the degree to which residential and business property values respond differently to changes in taxes and school spending.…”

supporting

confidence: 71%

The Effects of Changes in Property Tax Rates and School Spending on Residential and Business Property Value Growth

Kang

Skidmore

Reese

2015

Real Estate Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. In this paper, we examine the effects of changes in property tax rates and school spending on residential and business property value growth in southeast Michigan. We use panel data for 152 communities in the five counties surrounding Detroit between the years 1983 and 2002, a period during which state government mandated major changes to school finance. Using the mandated changes to identify causality, we find that: 1) residential property values are more responsive to school spending changes than property tax rate changes; 2) business property values are more responsive to tax rate changes than school spending changes, and 3) business property values are more sensitive to changes in tax rates as compared to residential property. We also examine tax competition effects on property value growth, showing that tax competition plays an important role in property value growth in the southeast Michigan region. Terms of use: Documents inJEL-Code: R100, R500.

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confidence: 71%

The Effects of Changes in Property Tax Rates and School Spending on Residential and Business Property Value Growth

Kang

Skidmore

Reese

2015

Real Estate Economics

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“…In our analysis, the simultaneity problem between property taxes/school spending and tax base growth is also a primary concern. To overcome the simultaneity problem, we follow the framework of Skidmore, Reese, and Kang (), and Kang, Skidmore, and Reese (2015), and exploit the imposition of Proposal A, which resulted in differential changes in property taxes and school spending across communities in Michigan…”

Section: Methodsmentioning

confidence: 99%

“…There are several items worth noting before we turn to a discussion of the empirical analysis: (1) in the preferred specifications, we treat the competitor tax abatement variable as exogenous; (2) to examine the effects of the changes in competitor tax/spending policies on industrial property value growth, following the framework of Skidmore, Reese, and Kang (), and Kang, Skidmore, and Reese (2015), we use the relative changes in property tax rates and school spending between one's own community and competitor communities; (3) changes in property tax rates and school spending as dictated by the imposition of school finance reform (Proposal A) in 1994 are used as instruments; and (4) in the estimates that take into account competitor activity, we transform our instruments in a way that is analogous to the method we used to transform the other explanatory variables. Relative changes in the explanatory variables between one's own community and competitor communities, are defined as follows:

Log CPT = \log (Own Property Tax) - \log (Competitor Property Taxes)

Log CS = \log (School Spending) - \log (Competitor School Spending)

Log CC = \log (Crime Rates) - \log (Competitor Crime Rates)

…”

Section: Methodsmentioning

confidence: 99%

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Do Industrial Tax Abatements Spur Property Value Growth?

Kang¹,

Reese²,

Skidmore³

2015

J Policy Anal Manage

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“…Another important study is that of Haughwouta et al (2004), where Tiebout-Oatesa's concept (Edel and Sclar, 1974) was transformed into the HaughwoutInman model, which examines the correlations between municipality revenue, tax revenue, tax rate, non-tax revenue and the price index of local public services. Their model was expanded by Skidmore, Reese and Kang (2012) by including tax competition between different areas. Among newer studies, it is worth mentioning the study of Banzhaf and Oates (2013), which confirms that the capitalization value consists of not only paid real estate tax but also the public debt for financing municipalities.…”

Section: Prices Of Residential Real Estatementioning

confidence: 99%

Impact of the real estate taxation and municipal revenue on dynamics of internal migration: Case study for City Municipal of Ljubljana

Janež¹,

Bogataj²,

Drobne³

2016

geod. vestn.

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INTRODUCTIONIn spatial economics, it is an important issue how to attract migration flows to a given local community, for instance, a municipality and how to retain the population in that municipality; see e.g. Tiebout (1956Tiebout ( , 1961, Tullock (1971), Chun (1996. Slovenia has no institutionalized intermediate level of government between the state and municipalities. That is why municipalities represent a basic cell for realizing regional development with certain development objectives at state level. The achievement of these objectives is strongly linked to the financing of municipalities, their economic power and stability. The Republic of Slovenia highlights the welfare of each individual as the central objective of social development, whereby changes in economy and society are focused on raising the welfare of current and future generations (the Spatial Development Strategy of Slovenia 2014-2020 (draft), the Ministry of Economy, 2013 and the RS Development Report, the Institute of Macroeconomic Analysis and Development, 2015). Special attention has been given to the projection of demographic trends.In this paper, we discuss migration flows between municipalities in the Republic of Slovenia. Permanent migration (hereinafter: migration) is a spatial phenomenon, whereby individuals or groups of people change residence (Bole, 2004) between the analysed spatial units (added by authors). Migrations have long-term consequences on the transport policy, infrastructure and other spatial structures. Migrations are strongly linked with the real estate market. Migrations are an important and complex phenomenon and have a significant impact on demographic, economic and wider social development (Bevc, 2000). By applying theoretical and empirical studies of migrations flows, we can explain important consequences of migration flows. Empirical research significantly contributes to a better understanding of these demographic dynamics serving to improve political decision-making connected to activities which affect the physical environment and the management of facilities within this environment. Furthermore, they facilitate discussions about the taxation policy parameters as a potential regulator of city growth. Using various mechanisms of development policies, municipalities or regions can influence the development of their territory and consequently the future demographic dynamics. The term "urban development" refers to changes in settlement conditions and the changing structure of cities in response to economic and social conditions (Drozg, 2008). Spatial development stems from the implementation of several public policies; their impact can be direct (e.g. the construction of transport infrastructure) and indirect (e.g. tax policy measures) (Miklavčič et al., 2016). Municipalities are obligated to manage their revenues in such a way as to offer public services and take care of spatial development (Pichler Milanović et al., 2008). Municipalities should create conditions that will ensure a high-quality living environmen...

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Regional analysis of property taxation, education finance reform, and property value growth

Cited by 17 publications

References 26 publications

The Effects of Changes in Property Tax Rates and School Spending on Residential and Business Property Value Growth

The Effects of Changes in Property Tax Rates and School Spending on Residential and Business Property Value Growth

Do Industrial Tax Abatements Spur Property Value Growth?

Impact of the real estate taxation and municipal revenue on dynamics of internal migration: Case study for City Municipal of Ljubljana

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