Anticipated property tax increases and the timing of home sales: Evidence from administrative data

William Hoyt; Lucas Taulbee; Aaron Yelowitz

doi:10.1111/pbaf.12377

Anticipated property tax increases and the timing of home sales: Evidence from administrative data

William Hoyt
, Lucas Taulbee
, Aaron Yelowitz

Producción científica: Article › revisión exhaustiva

Resumen

The infrequent reassessment of properties results in a divergence between the assessed values of current owners and prospective purchasers. This divergence is reduced when properties are reassessed, as is the tax “wedge” between current owners and prospective buyers. We examine how a reassessment-induced reduction in this tax wedge affects home sales. Using data from Lexington, KY and our preferred approach, we find that reassessments are associated with an increase in sales of approximately 5%. Using an alternative approach, we find that a 10% increase in taxes due to reassessment increases the probability of a sale by 3%.

Idioma original	English
Páginas (desde-hasta)	114-146
Número de páginas	33
Publicación	Public Budgeting and Finance
Volumen	44
N.º	4
DOI	https://doi.org/10.1111/pbaf.12377
Estado	Published - dic 1 2024

Nota bibliográfica

Publisher Copyright:
© 2024 Public Financial Publications, Inc.

Financiación

The authors thank and wish to acknowledge the helpful comments and suggestions of two anonymous referees and the editors of this journal as well as David Agrawal, Thiess Buettner, Chris Bollinger, Denvil Duncan, John Foster, Christopher Goodman, Raphael Parchett, Louis Warren, Caroline Weber, and seminar participants at the Association of Budgeting and Financial Management (ABFM), the Kentucky Economics Association, the National Tax Association, the University of Kentucky, Universitá sella Svizzera Italiana (Lugano), and FAU Erlangen-Nűrnberg.

Financiadores
Universitá sella Svizzera Italiana
Kentucky Economics Association
University of Kentucky
Friedrich-Alexander-Universität Erlangen-Nürnberg
National Tax Association

ASJC Scopus subject areas

Finance
Economics and Econometrics
Public Administration

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abstract = "The infrequent reassessment of properties results in a divergence between the assessed values of current owners and prospective purchasers. This divergence is reduced when properties are reassessed, as is the tax “wedge” between current owners and prospective buyers. We examine how a reassessment-induced reduction in this tax wedge affects home sales. Using data from Lexington, KY and our preferred approach, we find that reassessments are associated with an increase in sales of approximately 5\%. Using an alternative approach, we find that a 10\% increase in taxes due to reassessment increases the probability of a sale by 3\%.",

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Anticipated property tax increases and the timing of home sales: Evidence from administrative data

Resumen

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