Vertical Inequity in Property Taxation: A Neighborhood Based Analysis

Posted: 12 Jan 2004

See all articles by John W. Birch

John W. Birch

University of Wyoming - College of Business - Department of Economics and Finance

Mark A. Sunderman

University of Wyoming - College of Business - Department of Economics and Finance

Brent C. Smith

Virginia Commonwealth University

Abstract

This paper applies a model to test for vertical inequity in property taxes using a set of residential sales from Bloomington, Indiana. The initial purpose is to compare results with those using the presently accepted regression approach as applied by Smith (2000) to the same data. The new outcomes demonstrate there can be significant inequity in a jurisdiction that remains hidden under previous testing methods. Also, the new procedure generates multipliers to adjust for identified inequities. Findings imply that tests for value related inequity in property tax assessment should be conducted using multiple spatial scales.

Keywords: Vertical Property Tax Inequity, Property Taxation, Tax Inequity, Public Policy, Assessment

Suggested Citation

Birch, John W. and Sunderman, Mark A. and Smith, Brent C., Vertical Inequity in Property Taxation: A Neighborhood Based Analysis. Journal of Real Estate Finance and Economics, Vol. 29, No. 1, Available at SSRN: https://ssrn.com/abstract=478006

John W. Birch

University of Wyoming - College of Business - Department of Economics and Finance ( email )

P.O. Box 3985
1000 E. University Avenue
Laramie, WY 82071-3985
United States
307-766-4215 (Phone)
307-766-5090 (Fax)

Mark A. Sunderman (Contact Author)

University of Wyoming - College of Business - Department of Economics and Finance ( email )

P.O. Box 3985
1000 E. University Avenue
Laramie, WY 82071-3985
United States
307-766-4199 (Phone)
307-766-5090 (Fax)

Brent C. Smith

Virginia Commonwealth University ( email )

1015 Floyd Avenue
Richmond, VA 23284
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
577
PlumX Metrics