Who Supports Portable Assessment Caps: The Role Of Lock-in, Mobility And Tax Share

Title:
Who Supports Portable Assessment Caps: The Role Of Lock-in, Mobility And Tax Share
Authors:
Cheung, Ron; Cunningham, Chris
Abstract:
Popular support for property assessment caps has been explained as attempts to protect long-time home owners and to constrain local public expenditures. However, in the absence of a binding cap on millage rates, an assessment limit simply lowers the tax share of low-mobility homeowners at the expense of high-mobility homeowners. A recent amendment in Florida made existing exemptions portable, lowering the tax share of high mobility households and raising the tax share of low mobility households. Examining vote share by precinct, we find that more mobile households support portability but that precincts with larger exemptions do not. We also find evidence that voters understood how the amendment impacts their tax share. Support for portability is higher when a city has many out-of-state and thus "exemption-less" immigrants and support is lower when mobility in the rest of the tax jurisdiction is high. These findings suggest that voters alter assessment rules to minimize their own tax share.
Citation:
Cheung, Ron, and Chris Cunningham. 2011. "Who Supports Portable Assessment Caps: The Role Of Lock-in, Mobility And Tax Share." Regional Science And Urban Economics 41(3): 173-186.
Publisher:
Elsevier
DATE ISSUED:
2011-05
Department:
Economics
Type:
article
PUBLISHED VERSION:
10.1016/j.regsciurbeco.2011.01.001
PERMANENT LINK:
http://hdl.handle.net/11282/310077

Full metadata record

DC FieldValue Language
dc.contributor.authorCheung, Ronen_US
dc.contributor.authorCunningham, Chrisen_US
dc.date.accessioned2013-12-23T16:24:45Z-
dc.date.available2013-12-23T16:24:45Z-
dc.date.issued2011-05en
dc.identifier.citationCheung, Ron, and Chris Cunningham. 2011. "Who Supports Portable Assessment Caps: The Role Of Lock-in, Mobility And Tax Share." Regional Science And Urban Economics 41(3): 173-186.en_US
dc.identifier.issn0166-0462en_US
dc.identifier.urihttp://hdl.handle.net/11282/310077-
dc.description.abstractPopular support for property assessment caps has been explained as attempts to protect long-time home owners and to constrain local public expenditures. However, in the absence of a binding cap on millage rates, an assessment limit simply lowers the tax share of low-mobility homeowners at the expense of high-mobility homeowners. A recent amendment in Florida made existing exemptions portable, lowering the tax share of high mobility households and raising the tax share of low mobility households. Examining vote share by precinct, we find that more mobile households support portability but that precincts with larger exemptions do not. We also find evidence that voters understood how the amendment impacts their tax share. Support for portability is higher when a city has many out-of-state and thus "exemption-less" immigrants and support is lower when mobility in the rest of the tax jurisdiction is high. These findings suggest that voters alter assessment rules to minimize their own tax share.en_US
dc.publisherElsevieren_US
dc.identifier.doi10.1016/j.regsciurbeco.2011.01.001-
dc.subject.departmentEconomicsen_US
dc.titleWho Supports Portable Assessment Caps: The Role Of Lock-in, Mobility And Tax Shareen_US
dc.typearticleen_US
dc.identifier.journalRegional Science And Urban Economicsen_US
dc.subject.keywordProperty taxen_US
dc.subject.keywordVotingen_US
dc.subject.keywordAssessment capen_US
dc.subject.keywordLock-inen_US
dc.subject.keywordMobilityen_US
dc.subject.keywordLocal public financeen_US
dc.subject.keywordLocal political economyen_US
dc.identifier.volume41en_US
dc.identifier.issue3en_US
dc.identifier.startpage173en_US
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