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Seasonal Homes and the Local Property Tax: Evidence from New York State

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  • Lester Hadsell
  • Chad Colarusso

Abstract

This study examines the growth of seasonal (i.e., second or vacation) homes and their impact on local property tax rates using evidence from towns and villages in New York State between 1990 and 2000. We find that a greater concentration of seasonal homes in a municipality is associated with a lower effective property tax rate in towns, and a higher rate in small and rural villages. An alternative measure of tax burden, property taxes as a percentage of median household income, is not related to the presence of seasonal homes in towns but is positively related in small and rural villages. Our findings for towns contradict the findings of an earlier study by Fritz (1982) that found that an increase in town property allocated to vacation homes was significantly associated with an increasing property tax rate, although our findings for villages supports his findings.

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  • Lester Hadsell & Chad Colarusso, 2009. "Seasonal Homes and the Local Property Tax: Evidence from New York State," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 581-602, April.
    • Handle: RePEc:bla:ajecsc:v:68:y:2009:i:2:p:581-602
    DOI: 10.1111/j.1536-7150.2009.00636.x
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    References listed on IDEAS

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    1. W. Robert Reed & Cynthia L. Rogers, 2006. "Tax Burden and the Mismeasurement of State Tax Policy," Public Finance Review, , vol. 34(4), pages 404-426, July.
    2. Richard G. Fritz, 1982. "Tourism, Vacation Home Development and Residential Tax Burden:," American Journal of Economics and Sociology, Wiley Blackwell, vol. 41(4), pages 375-385, October.
    3. Seong†Hoon Cho & David H. Newman & David N. Wear, 2003. "Impacts of Second Home Development on Housing Prices in the Southern Appalachian Highlands," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 15(3), pages 208-225, November.
    4. Anderson, Nathan B., 2006. "Beggar Thy Neighbor? Property Taxation of Vacation Homes," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 757-780, December.
    5. Richard Lee Ragatz, 1970. "Vacation Housing: A Missing Component in Urban and Regional Theory," Land Economics, University of Wisconsin Press, vol. 46(2), pages 118-126.
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    2. Jason Giersch, 2014. "Effects of vacation properties on local education budgets," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-9, December.

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