Unintended Consequences of Property Tax Relief: New York’s STAR Program

Syracuse University Center for Policy Research Working Paper No. 71

49 Pages Posted: 19 Apr 2011

See all articles by Tae Ho Eom

Tae Ho Eom

Rutgers, The State University of New Jersey - Graduate Department of Public Administration

William D. Duncombe

Syracuse University, Maxwell School of Citizenship and Public Affairs

John Yinger

Syracuse University, Maxwell School of Citizenship and Public Affairs

Date Written: October 1, 2005

Abstract

New York’s School Tax Relief Program, STAR, provides state-funded property tax relief for homeowners. Like a matching grant, STAR changes the price of public services, thereby altering the incentives of voters and school officials and leading to unintended consequences. Using data for New York State school districts before and after STAR was implemented, we find that STAR resulted in small increases in student performance along with significant decreases in the efficiency with which this performance is delivered and significant increases in school spending and property tax rates. These tax-rate increases magnify existing inequities in New York State’s education finance system.

JEL Classification: H71

Suggested Citation

Eom, Tae Ho and Duncombe, William David and Yinger, John, Unintended Consequences of Property Tax Relief: New York’s STAR Program (October 1, 2005). Syracuse University Center for Policy Research Working Paper No. 71, Available at SSRN: https://ssrn.com/abstract=1814022 or http://dx.doi.org/10.2139/ssrn.1814022

Tae Ho Eom

Rutgers, The State University of New Jersey - Graduate Department of Public Administration ( email )

Newark, NJ 07102
United States

William David Duncombe (Contact Author)

Syracuse University, Maxwell School of Citizenship and Public Affairs ( email )

Center for Policy Research
426 Eggers Hall
Syracuse, NY 13244-1020
United States
315-443-9040 (Phone)

John Yinger

Syracuse University, Maxwell School of Citizenship and Public Affairs ( email )

Center for Policy Research
426 Eggers Hall
Syracuse, NY 13244-1020
United States
315-443-9062 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
49
Abstract Views
1,012
PlumX Metrics