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An Empirical Analysis of the Property Tax Appeals Process

Author

Listed:
  • William M. Doerner

    (Federal Housing Finance Agency)

  • Keith Ihlanfeldt

    (Department of Economics, Florida State University)

Abstract

Property tax appeals have increased dramatically at significant cost to local governments. Little is known about whether or how well the appeals process resolves potential assessment errors. This paper investigates the efficiency and equity of this process. Regarding the efficiency of correcting assessment error, reductions are granted for a majority of appealing homeowners who are overassessed but also for homeowners who are not overassessed, leaving them underassessed or further underassessed. Regarding the fairness of the appeals process, homeowners from particular neighborhoods receive assessment reductions more often. Tax representatives play an important role in explaining the advantage enjoyed by these homeowners.

Suggested Citation

  • William M. Doerner & Keith Ihlanfeldt, 2012. "An Empirical Analysis of the Property Tax Appeals Process," Working Papers wp2012_01_01, Department of Economics, Florida State University, revised Jul 2014.
    • Handle: RePEc:fsu:wpaper:wp2012_01_01
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    References listed on IDEAS

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    1. K. G. Mäler & J. R. Vincent (ed.), 2005. "Handbook of Environmental Economics," Handbook of Environmental Economics, Elsevier, edition 1, volume 3, number 3.
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    5. Burge, Gregory S. & Ihlanfeldt, Keith R., 2005. "Estimating Aggregate Levels of Property Tax Assessment Within Local Jurisdictions: An Extension of the Ihlanfeldt Model to Multiple Land Uses," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(4), pages 723-740, December.
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    10. Ihlanfeldt, Keith R., 2004. "The Use of an Econometric Model for Estimating Aggregate Levels of Property Tax Assessment Within Local Jurisdictions," National Tax Journal, National Tax Association;National Tax Journal, vol. 57(1), pages 7-23, March.
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    12. Daniel P. McMillen, 2013. "The Effect of Appeals on Assessment Ratio Distributions: Some Nonparametric Approaches," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 41(1), pages 165-191, March.
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    Cited by:

    1. Carlos F. Avenancio-León & Troup Howard, 2020. "The Assessment Gap: Racial Inequalities in Property Taxation," Opportunity and Inclusive Growth Institute Working Papers 34, Federal Reserve Bank of Minneapolis.
    2. Iuliia Shybalkina, 2021. "The role of organized groups in administrative burdens of property taxation," Journal of Behavioral Public Administration, Center for Experimental and Behavioral Public Administration, vol. 4(1).

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    More about this item

    Keywords

    appeal; property tax; assessment error;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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