The Hated Property Tax: Salience, Tax Rates, and Tax Revolts / Marika Cabral, Caroline Hoxby.

Format:

Book

Author/Creator:

Cabral, Marika.

Contributor:

National Bureau of Economic Research.

Hoxby, Caroline.

Series:

Working Paper Series (National Bureau of Economic Research) no. w18514.

NBER working paper series no. w18514

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

Because of the obtrusive manner in which they are normally paid, property taxes are likely the most salient taxes in the U.S. However, they are much less salient to homeowners with tax escrow. Exploiting geographical variation in tax escrow, we test how salience affects property tax rates and limits. We instrument for tax escrow using bank holding companies' national mortgage servicing assets, focusing on companies that have local branches but do most of their business outside the area. We find that a one standard deviation increase in tax escrow produces about a one standard deviation decrease in property tax rates.

Notes:

Print version record

November 2012.