The Effect of Property Taxes on Businesses: Evidence from a Dynamic Regression Discontinuity Approach

54 Pages Posted: 5 Aug 2022

See all articles by Shawn Rohlin

Shawn Rohlin

Kent State University - Department of Economics

Ali Enami

University of Akron

C. Lockwood Reynolds

Kent State University

Abstract

We employ a dynamic regression discontinuity design comparing business outcomes in areas that passed additional school property taxes to business outcomes in areas that failed to do so. We find little evidence that passage of a property tax referendum has an effect on the total number of establishments in the district in the following years. Further, there is little evidence that property taxes affect total firm births or deaths. However, there is some evidence that more capital-intensive industries and/or those with 10 or more employees may be more impacted than less capital-intensive industries and/or those with less than 10 employees. Additionally, we find evidence that some older establishments may relocate to new areas.

Keywords: L20, H25, R33

Suggested Citation

Rohlin, Shawn and Enami, Ali and Reynolds, C. Lockwood, The Effect of Property Taxes on Businesses: Evidence from a Dynamic Regression Discontinuity Approach. Available at SSRN: https://ssrn.com/abstract=4182937

Shawn Rohlin (Contact Author)

Kent State University - Department of Economics ( email )

Kent, OH 44242
United States

Ali Enami

University of Akron ( email )

259 S. Broadway
Akron, OH 44325
United States

C. Lockwood Reynolds

Kent State University ( email )

Kent, OH 44242
United States

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