The Millage Rate Offset and Property Tax Revenue Stability
Document Type
Article
Publication Date
5-2014
Abstract
One of the alleged virtues of the property tax is that it produces stable revenues regardless of price movements in real estate markets. One explanation for this is that local governments adjust their millage rates to offset changes in their property tax base. Little evidence, however, exists on the strength of this millage rate offset mechanism. We hypothesize that the importance of this mechanism will vary among local governments depending upon the monopoly power that they possess. The results provide strong support for our hypothesis.
Repository Citation
Ihlanfeldt, K. R.,
& Willardsen, K.
(2014). The Millage Rate Offset and Property Tax Revenue Stability. Regional Science and Urban Economics, 46, 167-176.
https://corescholar.libraries.wright.edu/econ/286
DOI
10.1016/j.regsciurbeco.2014.04.004