Main Article Content
Abstract
Purpose: This research aims to provide a comprehensive overview of property taxes and their implications for the real estate market, covering economic, social, political, and environmental dimensions.
Research Design and Methodology: The research methodology involved a systematic literature review that relied on insights from multiple disciplinary perspectives, including economics, public policy, urban planning and environmental studies.
Findings and Discussion: The findings underscore the pivotal role of property taxes in shaping property values, investment decisions, and broader urban development patterns.
Implications: Policymakers, practitioners, and researchers can utilize insights from this study to develop holistic strategies for property tax reform that promote fairness, transparency, and accountability in governance.
Keywords
Article Details

This work is licensed under a Creative Commons Attribution 4.0 International License.
References
- Adam, S., & Franzen, M. (2019). Introducing the Fiscally Standardized Cities Database. Lincoln Institute of Land Policy. https://doi.org/10.2139/ssrn.3461985
- Alesina, A., Bayoumi, T., & Panizza, U. (2018). The implications of fiscal decentralization for macroeconomic stability. IMF Economic Review, 66(3), 539-563. https://doi.org/10.1057/s41308-018-0060-5
- Anenberg, E., & Kung, E. (2014). Estimating the value of parking in central business districts. American Economic Review, 104(6), 575-580. https://doi.org/10.1257/aer.104.6.575
- Arnold, C. (2016). Tax reform in sub-Saharan Africa: A case study of Zambia. Review of African Political Economy, 43(147), 142-155. https://doi.org/10.1080/03056244.2015.1136252
- Baldwin, A., & Wilhelm, M. (2020). Property tax delinquency in the United States: An empirical investigation of administrative and political determinants. Public Budgeting & Finance, 40(3), 20-41. https://doi.org/10.1111/pbaf.12249
- Besley, T., & Coate, S. (1997). An economic model of representative democracy. Quarterly Journal of Economics, 112(1), 85-114. https://doi.org/10.1162/003355397555163
- Besley, T., & Coate, S. (1997). An economic model of representative democracy. Quarterly Journal of Economics, 112(1), 85-114. https://doi.org/10.1162/003355300554850
- Brueckner, J. K. (2009). Property taxation and urban sprawl. Journal of Public Economics, 93(5-6), 771-781. https://doi.org/10.1016/j.jpubeco.2008.10.007
- Brueckner, J. K. (2009). Urban sprawl: Lessons from urban economics. In G. Duranton, J. V. Henderson, & W. C. Strange (Eds.), Handbook of regional and urban economics (Vol. 5, pp. 2423-2480). Elsevier. https://doi.org/10.1016/S1574-0080(09)05019-1
- Buettner, T., & Ebertz, A. (2009). Local business taxation and competition for capital: The choice of the tax rate. Journal of Public Economics, 93(9-10), 1100-1111. https://doi.org/10.1016/j.jpubeco.2009.06.003
- Buettner, T., & Ebertz, A. (2009). Quality of life in the regions: An empirical analysis of the German Federal States. Regional Studies, 43(7), 993-1004. https://doi.org/10.1080/00343400701654194
- Buettner, T., & Wamser, G. (2021). Local taxation and land use: Evidence from a land value tax reform. Journal of Urban Economics, 120, 103312. https://doi.org/10.1016/j.jue.2021.103312
- Buettner, T., & Wamser, G. (2021). Tax incentives and the allocation of foreign direct investment: How the location of international firms responds to capital taxation. Journal of International Economics, 128, 103405. https://doi.org/10.1016/j.jinteco.2020.103405
- Chernick, H., & Reschovsky, A. (2004). Distributional effects of state and local taxes: What do we know? National Tax Journal, 57(3), 667-686. https://doi.org/10.17310/ntj.2004.3.11
- Chernick, H., & Reschovsky, A. (2004). Distributional equity in the operation of the property tax. National Tax Journal, 57(1), 139-156. https://doi.org/10.17310/ntj.2004.1.07
- Czajkowski, J., Hanley, N., & LaRiviere, J. (2020). The effects of weather on property values and rents: Evidence from shoreline housing markets. Journal of Environmental Economics and Management, 104, 102389. https://doi.org/10.1016/j.jeem.2020.102389
- Deschenes, O., & Greenstone, M. (2020). Climate change, sea level rise, and coastal flooding: The case of Vietnam. American Economic Review, 110(3), 308-334. https://doi.org/10.1257/aer.20170898
- Deschenes, O., & Greenstone, M. (2020). Climate change, sea level rise, and coastal flooding: Implications for property values. Review of Environmental Economics and Policy, 14(1), 163-181. https://doi.org/10.1093/reep/rez015
- Diamond, J., & McQuade, T. J. (2018). Who wants affordable housing in their backyard? An equilibrium analysis of low income property development. Journal of Political Economy, 126(1), 89-126. https://doi.org/10.1086/694033
- Diamond, P. A., & McQuade, T. J. (2018). Who benefits from state corporate tax cuts? A local labor markets approach with heterogeneous firms. American Economic Review, 108(2), 393-418. https://doi.org/10.1257/aer.20141406
- Diamond, P. A., & Toder, E. J. (2019). The distributional effects of revising the property tax: An analytic solution. National Tax Journal, 72(4), 843-862. https://doi.org/10.17310/ntj.2019.4.07
- Diamond, R., & Toder, E. (2019). The incidence of the property tax: Evidence from New Jersey. National Tax Journal, 72(4), 873-904. https://doi.org/10.17310/ntj.2019.4.05
- Dye, R. F. (1997). An evaluation of tax increment financing. Regional Science and Urban Economics, 27(6), 691-716. https://doi.org/10.1016/S0166-0462(97)80001-9
- Dye, R. F. (2010). Tiebout and tax revolts: Did Serrano really cause Proposition 13? National Tax Journal, 63(3), 377-409. https://doi.org/10.17310/ntj.2010.3.01
- Filippakopoulou, V. (2014). Property tax mispricing and investment inefficiency. Journal of Public Economics, 115, 15-25. https://doi.org/10.1016/j.jpubeco.2014.03.003
- Fischel, W. A. (2001). The homevoter hypothesis: How home values influence local government taxation, school finance, and land-use policies. *Harvard University Press.
- George, H. (1879). Progress and poverty: An inquiry into the cause of industrial depressions and of increase of want with increase of wealth. Doubleday, Page, & Company.
- Glaeser, E. L., Gyourko, J., & Saiz, A. (2019). Housing supply and housing bubbles. Journal of Urban Economics, 111, 35-48. https://doi.org/10.1016/j.jue.2019.05.001
- Graves, P. E., & Smart, M. (2019). Implementing a property tax in a federal context: Lessons from the Canadian provinces. Journal of Property Tax Assessment & Administration, 16(4), 27-42.
- Graves, P. E., & Smart, M. (2019). Implications of research on the economics of property tax for state tax policy. National Tax Journal, 72(4), 1027-1054. https://doi.org/10.17310/ntj.2019.4.08
- Guren, A. M., Hite, P. A., & Rupasingha, A. (2018). Do targeted business incentives create local economic development? Journal of Regional Science, 58(4), 691-718. https://doi.org/10.1111/jors.12393
- Hanley, N., & Shogren, J. F. (2008). Introduction to environmental economics. *Oxford University Press.
- Hilber, C. A., & Schöni, O. (2016). Housing policies in the United Kingdom, Switzerland, and the United States: Lessons learned. *Oxford University Press.
- Hilber, C. A., & Schöni, O. (2016). Housing policies in the United Kingdom, Switzerland, and the United States: Lessons learned. Journal of Economic Perspectives, 30(2), 71-92. https://doi.org/10.1257/jep.30.2.71
- Inman, R. P. (2010). The case for higher service taxes in the suburbs. Brookings Papers on Economic Activity, 41(1), 205-255. https://doi.org/10.1353/eca.0.0082
- Ladd, H. F., & Yinger, J. (2021). America's fiscal choices: Evaluating the federal budget. Edward Elgar Publishing.
- Lake, R. W. (1978). The effect of property taxes on urban flight: Evidence from property tax delinquencies. Journal of Urban Economics, 5(4), 438-445. https://doi.org/10.1016/0094-1190(78)90013-6
- McCluskey, W. J., & Franzsen, R. (2018). International handbook of land and property taxation. *Edward Elgar Publishing.
- McCluskey, W. J., & Franzsen, R. (2018). Land value taxation: An applied analysis. Routledge.
- Musgrave, R. A. (1959). The theory of public finance: A study in public economy. McGraw-Hill Book Company.
- Oates, W. E. (2018). Property taxation. In A. J. Auerbach, R. Chetty, M. Feldstein, & E. Saez (Eds.), Handbook of public economics (Vol. 5, pp. 721-804). Elsevier. https://doi.org/10.1016/bs.hespub.2018.02.005
- Oates, W.J. (1969). The effects of property taxes and local public spending on property values: An empirical study of tax capitalization and the Tiebout hypothesis. Journal of Political Economy, 77(6), 957-971. https://doi.org/10.1086/259588
- O'Sullivan, A., & Sexton, T. (2013). Property taxation and local government finance. Wiley-Blackwell.
- Pendall, R., Foster, K. A., & Cowell, M. (2016). Resilience and regions: Building understanding of the metaphor. Cambridge University Press.
- Preston, I., Smith, R. M., & Watson, R. (2020). Tax compliance: From principles to practice. Edward Elgar Publishing.
- Rodden, J. (2006). Hamilton's paradox: The promise and peril of fiscal federalism. *Cambridge University Press.
- Rodden, J. (2006). Hamilton's paradox: The promise and peril of fiscal federalism. Cambridge University Press.
- Rosen, K. T. (1979). Wage-based indexes of urban quality of life. In A. H. Munnell & A. S. Reskin (Eds.), Urban economics and public policy: Proceedings of the Second International Conference on Urban Economics held by the Urban Economics Association (pp. 148-170). Academic Press.
- Sanger, D. E. (1990). Property tax reform: A new analysis. *Princeton University Press.
- Sanger, G. C. (1990). The effect of the 1986 Tax Reform Act on commercial real estate values. Journal of the American Real Estate and Urban Economics Association, 18(4), 423-431. https://doi.org/10.1111/1540-6229.00409
- Schwartz, A. (2020). Housing policy in the United States. Routledge.
- Sirmans, C. F., & Zietz, E. N. (2005). The dynamics of REIT capitalization rates and returns. Real Estate Economics, 33(2), 249-267. https://doi.org/10.1111/j.1540-6229.2005.00119.x
- Sirmans, G. S. (2008). Property taxes and real estate capitalization in the United States. Journal of Real Estate Research, 30(3), 361-380. https://doi.org/10.5555/rees.2008.30.3.361
- Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. Strahan and Cadell.
- Smith, R. M. (2021). Geographic information systems and spatial analysis. In R. M. Smith (Ed.), Introduction to urban analytics (pp. 121-150). Princeton University Press.
- Smith, R. M. (2021). Geographic information systems and spatial analysis. In Introduction to urban analytics (pp. 121-150). Princeton University Press.
- Stegman, M. A., Schill, M. H., & Adelino, M. (2018). Property taxes and the financial behavior of households. Journal of Urban Economics, 106, 60-72. https://doi.org/10.1016/j.jue.2018.05.003
- Terper, S. (2018). Tax policy and administration in Africa. *Edward Elgar Publishing.
- Turnbull, G. K., & Salvino, R. M. (2017). Property taxation, state aid, and school district wealth: A structural equation model. National Tax Journal, 70(3), 649-672. https://doi.org/10.17310/ntj.2017.3.02
- Wasylenko, M. J. (2018). State-local fiscal relationships in a changing federal system. National Tax Journal, 71(4), 731-754. https://doi.org/10.17310/ntj.2018.4.01
- Watson, D. P., Solomon, P. L., & Draine, J. B. (2018). From surviving to thriving: Residential mobility and supportive housing outcomes. Journal of Urban Economics, 106, 46-59. https://doi.org/10.1016/j.jue.2018.05.002
- Yinger, J. (2019). Redistribution by property tax assessment: The case of New Jersey. Journal of Housing Economics, 44, 150-163. https://doi.org/10.1016/j.jhe.2019.02.001
- Yinger, J. (2019). Redistribution by property tax assessment: The case of NewYork City. National Tax Journal, 72(4), 793-822. https://doi.org/10.17310/ntj.2019.4.05
References
Adam, S., & Franzen, M. (2019). Introducing the Fiscally Standardized Cities Database. Lincoln Institute of Land Policy. https://doi.org/10.2139/ssrn.3461985
Alesina, A., Bayoumi, T., & Panizza, U. (2018). The implications of fiscal decentralization for macroeconomic stability. IMF Economic Review, 66(3), 539-563. https://doi.org/10.1057/s41308-018-0060-5
Anenberg, E., & Kung, E. (2014). Estimating the value of parking in central business districts. American Economic Review, 104(6), 575-580. https://doi.org/10.1257/aer.104.6.575
Arnold, C. (2016). Tax reform in sub-Saharan Africa: A case study of Zambia. Review of African Political Economy, 43(147), 142-155. https://doi.org/10.1080/03056244.2015.1136252
Baldwin, A., & Wilhelm, M. (2020). Property tax delinquency in the United States: An empirical investigation of administrative and political determinants. Public Budgeting & Finance, 40(3), 20-41. https://doi.org/10.1111/pbaf.12249
Besley, T., & Coate, S. (1997). An economic model of representative democracy. Quarterly Journal of Economics, 112(1), 85-114. https://doi.org/10.1162/003355397555163
Besley, T., & Coate, S. (1997). An economic model of representative democracy. Quarterly Journal of Economics, 112(1), 85-114. https://doi.org/10.1162/003355300554850
Brueckner, J. K. (2009). Property taxation and urban sprawl. Journal of Public Economics, 93(5-6), 771-781. https://doi.org/10.1016/j.jpubeco.2008.10.007
Brueckner, J. K. (2009). Urban sprawl: Lessons from urban economics. In G. Duranton, J. V. Henderson, & W. C. Strange (Eds.), Handbook of regional and urban economics (Vol. 5, pp. 2423-2480). Elsevier. https://doi.org/10.1016/S1574-0080(09)05019-1
Buettner, T., & Ebertz, A. (2009). Local business taxation and competition for capital: The choice of the tax rate. Journal of Public Economics, 93(9-10), 1100-1111. https://doi.org/10.1016/j.jpubeco.2009.06.003
Buettner, T., & Ebertz, A. (2009). Quality of life in the regions: An empirical analysis of the German Federal States. Regional Studies, 43(7), 993-1004. https://doi.org/10.1080/00343400701654194
Buettner, T., & Wamser, G. (2021). Local taxation and land use: Evidence from a land value tax reform. Journal of Urban Economics, 120, 103312. https://doi.org/10.1016/j.jue.2021.103312
Buettner, T., & Wamser, G. (2021). Tax incentives and the allocation of foreign direct investment: How the location of international firms responds to capital taxation. Journal of International Economics, 128, 103405. https://doi.org/10.1016/j.jinteco.2020.103405
Chernick, H., & Reschovsky, A. (2004). Distributional effects of state and local taxes: What do we know? National Tax Journal, 57(3), 667-686. https://doi.org/10.17310/ntj.2004.3.11
Chernick, H., & Reschovsky, A. (2004). Distributional equity in the operation of the property tax. National Tax Journal, 57(1), 139-156. https://doi.org/10.17310/ntj.2004.1.07
Czajkowski, J., Hanley, N., & LaRiviere, J. (2020). The effects of weather on property values and rents: Evidence from shoreline housing markets. Journal of Environmental Economics and Management, 104, 102389. https://doi.org/10.1016/j.jeem.2020.102389
Deschenes, O., & Greenstone, M. (2020). Climate change, sea level rise, and coastal flooding: The case of Vietnam. American Economic Review, 110(3), 308-334. https://doi.org/10.1257/aer.20170898
Deschenes, O., & Greenstone, M. (2020). Climate change, sea level rise, and coastal flooding: Implications for property values. Review of Environmental Economics and Policy, 14(1), 163-181. https://doi.org/10.1093/reep/rez015
Diamond, J., & McQuade, T. J. (2018). Who wants affordable housing in their backyard? An equilibrium analysis of low income property development. Journal of Political Economy, 126(1), 89-126. https://doi.org/10.1086/694033
Diamond, P. A., & McQuade, T. J. (2018). Who benefits from state corporate tax cuts? A local labor markets approach with heterogeneous firms. American Economic Review, 108(2), 393-418. https://doi.org/10.1257/aer.20141406
Diamond, P. A., & Toder, E. J. (2019). The distributional effects of revising the property tax: An analytic solution. National Tax Journal, 72(4), 843-862. https://doi.org/10.17310/ntj.2019.4.07
Diamond, R., & Toder, E. (2019). The incidence of the property tax: Evidence from New Jersey. National Tax Journal, 72(4), 873-904. https://doi.org/10.17310/ntj.2019.4.05
Dye, R. F. (1997). An evaluation of tax increment financing. Regional Science and Urban Economics, 27(6), 691-716. https://doi.org/10.1016/S0166-0462(97)80001-9
Dye, R. F. (2010). Tiebout and tax revolts: Did Serrano really cause Proposition 13? National Tax Journal, 63(3), 377-409. https://doi.org/10.17310/ntj.2010.3.01
Filippakopoulou, V. (2014). Property tax mispricing and investment inefficiency. Journal of Public Economics, 115, 15-25. https://doi.org/10.1016/j.jpubeco.2014.03.003
Fischel, W. A. (2001). The homevoter hypothesis: How home values influence local government taxation, school finance, and land-use policies. *Harvard University Press.
George, H. (1879). Progress and poverty: An inquiry into the cause of industrial depressions and of increase of want with increase of wealth. Doubleday, Page, & Company.
Glaeser, E. L., Gyourko, J., & Saiz, A. (2019). Housing supply and housing bubbles. Journal of Urban Economics, 111, 35-48. https://doi.org/10.1016/j.jue.2019.05.001
Graves, P. E., & Smart, M. (2019). Implementing a property tax in a federal context: Lessons from the Canadian provinces. Journal of Property Tax Assessment & Administration, 16(4), 27-42.
Graves, P. E., & Smart, M. (2019). Implications of research on the economics of property tax for state tax policy. National Tax Journal, 72(4), 1027-1054. https://doi.org/10.17310/ntj.2019.4.08
Guren, A. M., Hite, P. A., & Rupasingha, A. (2018). Do targeted business incentives create local economic development? Journal of Regional Science, 58(4), 691-718. https://doi.org/10.1111/jors.12393
Hanley, N., & Shogren, J. F. (2008). Introduction to environmental economics. *Oxford University Press.
Hilber, C. A., & Schöni, O. (2016). Housing policies in the United Kingdom, Switzerland, and the United States: Lessons learned. *Oxford University Press.
Hilber, C. A., & Schöni, O. (2016). Housing policies in the United Kingdom, Switzerland, and the United States: Lessons learned. Journal of Economic Perspectives, 30(2), 71-92. https://doi.org/10.1257/jep.30.2.71
Inman, R. P. (2010). The case for higher service taxes in the suburbs. Brookings Papers on Economic Activity, 41(1), 205-255. https://doi.org/10.1353/eca.0.0082
Ladd, H. F., & Yinger, J. (2021). America's fiscal choices: Evaluating the federal budget. Edward Elgar Publishing.
Lake, R. W. (1978). The effect of property taxes on urban flight: Evidence from property tax delinquencies. Journal of Urban Economics, 5(4), 438-445. https://doi.org/10.1016/0094-1190(78)90013-6
McCluskey, W. J., & Franzsen, R. (2018). International handbook of land and property taxation. *Edward Elgar Publishing.
McCluskey, W. J., & Franzsen, R. (2018). Land value taxation: An applied analysis. Routledge.
Musgrave, R. A. (1959). The theory of public finance: A study in public economy. McGraw-Hill Book Company.
Oates, W. E. (2018). Property taxation. In A. J. Auerbach, R. Chetty, M. Feldstein, & E. Saez (Eds.), Handbook of public economics (Vol. 5, pp. 721-804). Elsevier. https://doi.org/10.1016/bs.hespub.2018.02.005
Oates, W.J. (1969). The effects of property taxes and local public spending on property values: An empirical study of tax capitalization and the Tiebout hypothesis. Journal of Political Economy, 77(6), 957-971. https://doi.org/10.1086/259588
O'Sullivan, A., & Sexton, T. (2013). Property taxation and local government finance. Wiley-Blackwell.
Pendall, R., Foster, K. A., & Cowell, M. (2016). Resilience and regions: Building understanding of the metaphor. Cambridge University Press.
Preston, I., Smith, R. M., & Watson, R. (2020). Tax compliance: From principles to practice. Edward Elgar Publishing.
Rodden, J. (2006). Hamilton's paradox: The promise and peril of fiscal federalism. *Cambridge University Press.
Rodden, J. (2006). Hamilton's paradox: The promise and peril of fiscal federalism. Cambridge University Press.
Rosen, K. T. (1979). Wage-based indexes of urban quality of life. In A. H. Munnell & A. S. Reskin (Eds.), Urban economics and public policy: Proceedings of the Second International Conference on Urban Economics held by the Urban Economics Association (pp. 148-170). Academic Press.
Sanger, D. E. (1990). Property tax reform: A new analysis. *Princeton University Press.
Sanger, G. C. (1990). The effect of the 1986 Tax Reform Act on commercial real estate values. Journal of the American Real Estate and Urban Economics Association, 18(4), 423-431. https://doi.org/10.1111/1540-6229.00409
Schwartz, A. (2020). Housing policy in the United States. Routledge.
Sirmans, C. F., & Zietz, E. N. (2005). The dynamics of REIT capitalization rates and returns. Real Estate Economics, 33(2), 249-267. https://doi.org/10.1111/j.1540-6229.2005.00119.x
Sirmans, G. S. (2008). Property taxes and real estate capitalization in the United States. Journal of Real Estate Research, 30(3), 361-380. https://doi.org/10.5555/rees.2008.30.3.361
Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. Strahan and Cadell.
Smith, R. M. (2021). Geographic information systems and spatial analysis. In R. M. Smith (Ed.), Introduction to urban analytics (pp. 121-150). Princeton University Press.
Smith, R. M. (2021). Geographic information systems and spatial analysis. In Introduction to urban analytics (pp. 121-150). Princeton University Press.
Stegman, M. A., Schill, M. H., & Adelino, M. (2018). Property taxes and the financial behavior of households. Journal of Urban Economics, 106, 60-72. https://doi.org/10.1016/j.jue.2018.05.003
Terper, S. (2018). Tax policy and administration in Africa. *Edward Elgar Publishing.
Turnbull, G. K., & Salvino, R. M. (2017). Property taxation, state aid, and school district wealth: A structural equation model. National Tax Journal, 70(3), 649-672. https://doi.org/10.17310/ntj.2017.3.02
Wasylenko, M. J. (2018). State-local fiscal relationships in a changing federal system. National Tax Journal, 71(4), 731-754. https://doi.org/10.17310/ntj.2018.4.01
Watson, D. P., Solomon, P. L., & Draine, J. B. (2018). From surviving to thriving: Residential mobility and supportive housing outcomes. Journal of Urban Economics, 106, 46-59. https://doi.org/10.1016/j.jue.2018.05.002
Yinger, J. (2019). Redistribution by property tax assessment: The case of New Jersey. Journal of Housing Economics, 44, 150-163. https://doi.org/10.1016/j.jhe.2019.02.001
Yinger, J. (2019). Redistribution by property tax assessment: The case of NewYork City. National Tax Journal, 72(4), 793-822. https://doi.org/10.17310/ntj.2019.4.05