2024/11/13 by Emily Horton, Cameron LaPoint, Byron Lutz +2 · 6 citations
Business, Management and Accounting · Economics, Econometrics and Finance · #Ad valorem tax #Economics #Financial Literacy, Pension, Retirement Analysis #Housing Market and Economics #Housing, Finance, and Neoliberalism #Property (philosophy) #Property tax #Public economics #Tax policy #Tax reform
paper · doi:10.1086/732777
published in National Tax Journal 77(4), 861-901 (University of Chicago Press)
openalex publication_date 2024/11/13 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/17
We examine property tax reduction as a tool for increasing housing affordability. Analyzing various tax reduction policies through the lens of property tax incidence reveals a complex relationship between affordability and property taxes, with differential effects across demographic groups. Many policies often fail to improve affordability for young first-time homebuyers and renters, sometimes worsening affordability. We present a new nationwide atlas documenting the prevalence of local measures altering property tax burdens. Quasi-experimental evidence from Georgia’s homestead exemption valuation freezes suggests strong capitalization of assessment limits into home values, reinforcing that property tax relief may worsen affordability for first-time buyers.