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An Empirical Analysis of the Property Tax Appeals Process

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  • Doerner, William
  • Ihlanfeldt, Keith

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

  • Doerner, William & Ihlanfeldt, Keith, 2014. "An Empirical Analysis of the Property Tax Appeals Process," MPRA Paper 61035, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:61035
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    References listed on IDEAS

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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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    7. Elizabeth Plummer, 2014. "The Effects of Property Tax Protests on the Assessment Uniformity of Residential Properties," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 42(4), pages 900-937, December.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    9. 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.
    10. Justin M. Ross, 2011. "Assessor Incentives and Property Assessment," Southern Economic Journal, John Wiley & Sons, vol. 77(3), pages 776-794, January.
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    Cited by:

    1. 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).
    2. 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.

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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
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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