Property Taxes and Residential Rents

18 Pages Posted: 2 Feb 2008

See all articles by Leah J. Tsoodle

Leah J. Tsoodle

affiliation not provided to SSRN

Tracy M. Turner

Kansas State University - Department of Economics

Abstract

Property taxes are a fundamental source of revenue for local governments, constituting 73% of local government tax revenue in the United States. In this article, we empirically investigate the impact of residential property taxes on residential rents. Using data from the American Housing Survey and the National League of Cities, we estimate numerous specifications of a hedonic rent equation with comprehensive unit-level, neighborhood-level and city-level controls. We find that a one standard deviation increase in the property tax rate raises residential rents by roughly $400 annually.

Suggested Citation

Tsoodle, Leah J. and Turner, Tracy M., Property Taxes and Residential Rents. Real Estate Economics, Vol. 36, No. 1, pp. 63-80, Spring 2008, Available at SSRN: https://ssrn.com/abstract=1089619 or http://dx.doi.org/10.1111/j.1540-6229.2008.00207.x

Leah J. Tsoodle (Contact Author)

affiliation not provided to SSRN

No Address Available

Tracy M. Turner

Kansas State University - Department of Economics ( email )

Manhattan, KS 66502-4001
United States

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