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The Distributional Impact of Statewide Property Tax Relief: the Michigan Case

Author

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  • Daniel L. Rubinfeld

    (University of Michigan)

  • Michael J. Wolkoff

    (University of Rochester)

Abstract

This study uses data from a random survey of 2001 Michigan households to analyze the extent to which the Michigan ctreuit-breaker has been successful in reducing the income regressivity of the property tax and in changing relative property tax burdens. Because of its relatively extensive coverage, including renters as well as homeowners and the nonaged as well as the aged, the circuit-breaker has yielded a more equal distribution of income within Michigan. Its potential to change the distribution of income depends on the particular formula utilized, but redistributional effects have thus far been lamited because program participation has been positively correlated with income. To the extent that reductions in the price ofpublic services created by the circuit-breaker are perceived by households, the biggest stimulus appears to be in high property tax/high-income counties

Suggested Citation

  • Daniel L. Rubinfeld & Michael J. Wolkoff, 1983. "The Distributional Impact of Statewide Property Tax Relief: the Michigan Case," Public Finance Review, , vol. 11(2), pages 131-153, April.
  • Handle: RePEc:sae:pubfin:v:11:y:1983:i:2:p:131-153
    DOI: 10.1177/109114218301100201
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    References listed on IDEAS

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    1. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-560, June.
    2. Robert Inman, 1978. "Testing political economy’s ‘as if’ proposition: is the median income voter really decisive?," Public Choice, Springer, vol. 33(4), pages 45-65, December.
    3. Polinsky, A Mitchell & Ellwood, David T, 1979. "An Empirical Reconciliation of Micro and Grouped Estimates of the Demand for Housing," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 199-205, May.
    4. Larry D. Schroeder & David L. Sjoquist, 1978. "Alternative Circuit-Breaker Programs: an Analysis of the Size and Distribution of Benefits," Public Finance Review, , vol. 6(4), pages 395-413, October.
    5. Rubinfeld, Daniel L, 1977. "Voting in a Local School Election: A Micro Analysis," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 30-42, February.
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    Cited by:

    1. R. Lankford, 1986. "Property taxes, tax-cost illusion and desired education expenditures," Public Choice, Springer, vol. 49(1), pages 79-97, January.

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