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Evidence on the Incidence of Residential Property Taxes Across Households

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  • Plummer, Elizabeth

Abstract

Property taxes are assessed by local taxing jurisdictions, including the county, city, and school district in which a property is located. This study examines the incidence of the residential property tax burden across 357,264 owner–occupied homes in Dallas County, Texas. Progressivity indices are computed for total property taxes combined and for each jurisdictional tax (county, city, and school district). After allowing for the federal income tax deduction of property taxes, total property taxes combined are approximately proportional. County and school taxes are proportional to slightly progressive, while city taxes are moderately regressive. Analysis suggests that tax rates contribute to the regressivity of city taxes because lower income cities tend to have relatively higher tax rates. The homestead exemption affects the incidence of city and school taxes, but in opposite ways. It makes city taxes more regressive, but makes school taxes more progressive. The over–65 exemption increases progressivity for all three jurisdictional taxes.

Suggested Citation

  • Plummer, Elizabeth, 2003. "Evidence on the Incidence of Residential Property Taxes Across Households," National Tax Journal, National Tax Association;National Tax Journal, vol. 56(4), pages 739-753, December.
    • Handle: RePEc:ntj:journl:v:56:y:2003:i:4:p:739-53
    DOI: 10.17310/ntj.2003.4.02
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    1. Slemrod,Joel, 1997. "Tax Progressivity and Income Inequality," Cambridge Books, Cambridge University Press, number 9780521587761, October.
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    Cited by:

    1. Dan Li & Shunfeng Song, 2008. "Property Tax in Urban China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(4), pages 48-63, July.
    2. Mary Beal & Mary O. Borg & Harriet Stranahan, 2017. "The Equity Effects of Property Tax Caps: Evidence from Florida," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 6, July.
    3. Keith Ihlanfeldt & Cynthia Fan Yang, 2023. "Are the home values and property tax burdens of permanent homeowners affected by growth in housing rentals and second homes: Evidence based on big data from Florida," Journal of Regional Science, Wiley Blackwell, vol. 63(2), pages 470-502, March.
    4. Plummer, Elizabeth, 2010. "Evidence on the Distributional Effects of a Land Value Tax on Residential Households," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(1), pages 63-92, March.
    5. Ihlanfeldt, Keith & Yang, Cynthia Fan, 2024. "The role of neighborhood characteristics in explaining political party residential segregation," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    6. Keith Ihlanfeldt & Cynthia Fan Yang, 2024. "Political and racial neighborhood sorting: How is it changing?," Public Choice, Springer, vol. 198(1), pages 161-187, January.

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