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The Effects of Property Taxes and Local Public Services upon Residential Property Values in Small Wisconsin Cities

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  • Melville McMillan
  • Richard Carlson

Abstract

Contrary to the results of similar studies in metropolitan areas, this investigation found no evidence that local property taxes and public expenditures were capitalized into the value of owner-occupied homes in small cities despite their considerable dependence upon the property tax. This does not imply that residents of small cities are insensitive to fiscal differences but rather is evidence of the more elastic supply of land for housing in nonmetropolitan communities.

Suggested Citation

  • Melville McMillan & Richard Carlson, 1977. "The Effects of Property Taxes and Local Public Services upon Residential Property Values in Small Wisconsin Cities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(1), pages 81-87.
    • Handle: RePEc:oup:ajagec:v:59:y:1977:i:1:p:81-87.
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    File URL: http://hdl.handle.net/10.2307/1239611
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    References listed on IDEAS

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    1. Oates, Wallace E, 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, University of Chicago Press, vol. 77(6), pages 957-971, Nov./Dec..
    2. E. C. Pasour, 1973. "Real Property Taxes and Farm Real Estate Values: Incidence and Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(4_Part_1), pages 549-556.
    3. Wales, T J & Wiens, E G, 1974. "Capitalization of Residential Property Taxes: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 329-333, August.
    4. Melville McMillan, 1975. ""Open Space Preservation in Developing Areas: An Alternative Policy": Reply," Land Economics, University of Wisconsin Press, vol. 51(4), pages 385-393.
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    Cited by:

    1. Christian A. L. Hilber, 2019. "Immobilienpreise und Immobilienzyklen und die Rolle von Angebotsbeschränkungen [The impact of local supply constraints on house prices and price dynamics]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 5(1), pages 37-65, November.
    2. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    3. Rościszewski, K., 1984. "Critical properties of the modified Ginzburg-Landau model for the nematic to smectic a phase transition," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 125(2), pages 412-424.
    4. Christian A. L. Hilber & Christopher J. Mayer, 2004. "Why Do Households Without Children Support Local Public Schools?," NBER Working Papers 10804, National Bureau of Economic Research, Inc.
    5. Geoffrey K. Turnbull & Minrong Zheng, 2021. "A Meta‐Analysis of School Quality Capitalization in U.S. House Prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1120-1171, December.
    6. Yadavalli, Anita P. & Florax, Raymond J.G.M., 2013. "The Effect of School Quality on House Prices: A Meta-Regression Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151291, Agricultural and Applied Economics Association.
    7. Clayton, Kenneth C. & Milon, J. Walter, 1979. "Agriculture and the Property Tax: Theoretical Issues and Empirical Evidence," Staff Paper Series 239309, University of Florida, Food and Resource Economics Department.
    8. Bulent Uyar & Kenneth H. Brown, 2005. "Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 427-444.
    9. Hilber, Christian A.L. & Mayer, Christopher, 2009. "Why do households without children support local public schools? Linking house price capitalization to school spending," Journal of Urban Economics, Elsevier, vol. 65(1), pages 74-90, January.
    10. Hilber, Christian A. L., 2011. "The economics implications of house price capitalization a survey of an emerging literature," LSE Research Online Documents on Economics 58596, London School of Economics and Political Science, LSE Library.
    11. Rosciszewski, K., 1984. "The mean-field type phase transition from smectic A to smectic C," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 127(3), pages 634-645.

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