Topic: Property Tax

Course

2020 Professional Certificate in Municipal Finance – Online

October 5, 2020 - October 9, 2020

Online

Offered in English

Events in Detroit, Stockton, Flint, and Puerto Rico highlight the severe challenges related to fiscal systems that support public services and the continued stress they face given local governments’ shrinking revenue streams.

Whether you want to better understand public-private partnerships, debt and municipal securities, or leading land-based finance strategies to finance infrastructure projects, this Professional Certificate in Municipal Finance will give you the skills and insights you need as you advance your career in urban planning, real estate, or economic development.

Overview

Created by Harris Public Policy’s Center for Municipal Finance and the Lincoln Institute of Land Policy, this program provides a thorough foundation in municipal finance with a focus on urban planning and economic development. This course will include modules on the following topics:

  • Urban Economics and Growth
  • Intergovernmental Fiscal Frameworks, Revenues, Budgeting
  • Capital Budgeting/Accounting and Infrastructure Maintenance
  • Debt/Municipal Securities 
  • Land-Based Finance/Land Value Capture
  • Public-Private Partnerships 
  • Cost-Benefit Analysis
  • Fiscal Analysis for Land Use and Development Decisions

Participants will learn how to effectively apply tools of financial analysis to make strategic decisions and gain an improved understanding of the interplay among finance, urban economics, and public policy as it relates to urban planning and economic development.

Upon completion of the program, participants will receive a Certificate in Municipal Finance. 

Who Should Attend

Urban planners who work in both the private and public sectors as well as individuals in the economic development, community development, and land development industries.

Cost

Nonprofit and public sector: $1,080
Private sector: $2,025

Space is limited.

Details

Date
October 5, 2020 - October 9, 2020
Application Period
August 10, 2020 - September 18, 2020
Selection Notification Date
September 21, 2020 at 12:00 AM
Location
Online
Language
English
Number of Credits
15.00
Educational Credit Type
AICP CM credits
Related Links

Keywords

Economic Development, Infrastructure, Land Use, Local Government, Municipal Fiscal Health, Planning, Property Taxation, Public Finance

Uneven Impacts

The Pandemic, The Property Tax, and Municipal Recovery
By Liz Farmer, June 16, 2020

 

Local governments are still learning what the COVID-19 crisis will mean for their revenues over the next year. In large part, the answer will depend on what part of the economy they rely on for their tax revenue.

Some are already grappling with grim news. In Kansas City, Missouri, council members are looking at budget cuts totalling $300 million over the next six years. In March, they approved a $1.7 billion budget that included a hiring freeze and reductions in travel, but noted they’ll likely have to face more difficult choices in the months ahead.

Meanwhile, more than 1,400 miles away in Boston, Mayor Marty Walsh has proposed a $3.65 billion budget for the next fiscal year. It’s a 4.4 percent spending boost over the current year that includes increased funding for education, housing, and public health.

It’s not that Boston is facing a vastly lower public health or economic impact from the COVID-19 virus. In fact, it has had notably more COVID-19 cases than Kansas City, both in number and as a share of the population. Instead, the difference lies in where each city gets most of its tax revenue.

In Boston, proceeds from the property tax make up 72 percent of general fund revenue. In Kansas City, however, property tax revenue accounts for less than 12 percent of general fund revenue. Instead, the city relies on more economically sensitive income streams: a local wage tax (44 percent of revenues) and the sales tax (20 percent of revenues). With the near-halting of economic activity this spring, the city is expecting an estimated $30 million–or 4 percent of general fund–revenue shortfall in the current fiscal year, which ended April 30, according to Fitch Ratings. That’s mainly due to Kansas City extending its earning-tax payment deadline; officials hope to recoup most of that in the 2021 fiscal year.

While the full impacts of the COVID-19 crisis on municipal revenues over the next few years are still unknown, what is clear is that we have been thrust into an economic recession that is unmatched in the modern era. During economic downturns, the property tax is a relatively stable source of revenue. The average city relies on the property tax for about one-quarter of general fund revenue, according to the Lincoln Institute’s Fiscally Standardized Cities, or FiSC, database. (Counties, by comparison, rely on the property tax for about one-third of their general fund revenue, according to the National Association of Counties.)

“During most post-World War II recessions, property tax revenues have not declined,” says the Lincoln Institute of Land Policy’s Adam Langley, who manages the FiSC database. This is largely because even if a downturn is prolonged enough to affect local home values, the lag time between real estate market changes and property valuations gives governments time to raise rates to make up the anticipated difference in revenue. “The notable exception is the Great Recession,” said Langley, associate director of U.S. and Canadian programs, “and that was a unique circumstance because of the historic housing bust.”

Kansas City Budget Director Scott Huizenga noted that the city’s rainy day reserves are at a record high — equivalent to nearly 20 percent of general fund spending. That’s a far better position than Kansas City was in entering the Great Recession, when it had about 5 percent of annual spending in reserves, according to Pew Trusts. Huizenga notes that forecasting the revenue impacts of the current crisis is a challenge.

“Like most places, we have a two-month delay between the activity on the ground and the revenue impact,” Huizenga said during an interview in late May. “It will be at least a few weeks more before we learn the totality of what happened in April, much less what’s going to happen a year from now.”

Even cities that rely on the relative stability of the property tax are by no means immune from the uncertainty of the moment. Cities across the country are struggling to balance their need for property tax revenue with the potential need to grant deferrals or other targeted tax relief to property owners who may not be able to pay their bills.

For example, California Gov. Gavin Newsom signed an executive order waiving penalties through May 6, 2021 for late property tax payments made by those affected by COVID-19. But the California Association of County Treasurers and Tax Collectors then urged those who could pay to do so on time, noting that property taxes “directly fund education, health care, hospitals, welfare services, fire protection, and homelessness efforts, to name a few.” At this point, most localities haven’t significantly pushed back property tax bill deadlines, even if their state has allowed it.

In many places, existing property tax relief programs are available, and when effectively targeted can provide critical relief to the neediest households without unduly diminishing local revenues. These “circuit breakers” provide relief to households once their property taxes exceed a specified percentage of income, so people with a sudden drop in earnings could qualify for substantial relief. Circuit breakers are available in 33 states and the District of Columbia, although many of those states use formulas that will not provide adequate relief to those with the heaviest tax burdens.

Conflicting predictions about the future of commercial real estate have also added uncertainty to the municipal property tax picture. With social distancing restrictions and other public health precautions decimating the retail and hospitality sector, several major retailers have declared bankruptcy and businesses of all sizes are struggling to stay open.

“Shopping malls and property used in the hospitality and entertainment industry may very well be facing a significant loss in value, particularly over the next couple of years.” said Lincoln Institute Resident Fellow Daphne Kenyon. “This would disproportionately affect those cities that are tourist or shopping meccas.” Reliance on commercial property tax revenue varies significantly from state to state, as illustrated by the Significant Features of the Property Tax database.

The future of commercial office space is also in question; it is expected that many employers will allow full or partial telecommuting after COVID-19 restrictions are lifted, and one University of Chicago study found that 34 percent of jobs in the United States could be performed remotely. Already, major tech companies like Facebook and Twitter have announced plans to let employees work from home permanently.

Some experts are predicting a sort of real estate “swap,” which could see businesses seeking new property outside of downtowns and former downtown office buildings converted to housing. Still others suggest that the smaller space requirements of housing fewer workers will be offset by the need to accommodate social distancing. These and other issues raise questions about the future of real estate in large cities—and therefore the value of downtown real estate properties and the tax revenue they generate.

Hilltop Securities’ Tom Kozlik said there were somewhat similar concerns that firms wouldn’t want to return to downtown Manhattan after the 9/11 terrorist attacks.

“I remember there were some people hesitant to fly or go up in skyscrapers, but that seemed to pass in a pretty short amount of time,” said Kozlik, head of municipal credit for the firm. “This time it’s a little different—I don’t think people have their heads around what the entire public health threat is right now. And that’s one of things policymakers are trying to figure out.”

Despite the many uncertainties facing municipal governments, Kenyon says the relative stability of the property tax is not in doubt. “Property taxes are the most stable of the big three taxes—income, sales, and property. For local governments that depend heavily on the property tax, and for the citizens who benefit from the services that property taxes support, this is a ray of light in a very tumultuous time.”

 

 

Liz Farmer is a fiscal policy expert and journalist whose areas of expertise include budgets, fiscal distress, and tax policy. She is currently a research fellow at the Rockefeller Institute’s Future of Labor Research Center.

Photographs in order of appearance

In municipalities across the country, including Kansas City, Missouri, leaders are grappling with the fiscal impacts of COVID-19. The impacts will vary depending on the relative sources of tax revenue in each place. Credit: Kate Brown via Flickr CC BY 2.0.

During most post-World War II recessions, property tax revenues have not declined, largely because the lag time between real estate market changes and property valuations gives governments time to make up the anticipated difference in revenue. The notable exception was the Great Recession. Credit: Lincoln Institute of Land Policy.

Property Tax

Fifty-State Study Shows Property Tax Inequities from Assessment Limits Continue to Grow
By Will Jason, June 10, 2020

 

In Los Angeles, someone who has owned a median-priced home for 14 years—the average length of ownership in the city—paid about $4,400 in property taxes last year, or about $3,600 less than a new owner of an identical home, who paid nearly $8,000. This gap between the tax bills for new and established homeowners grew by $400 last year alone, and has increased by $1,500 in the past four years, according to the annual 50-State Property Tax Comparison Study by the Lincoln Institute of Land Policy and the Minnesota Center for Fiscal Excellence.

Los Angeles is one of 29 large cities included in the report where assessment limits cap annual growth in the assessed value of individual properities, a policy that favors longtime homeowners. When real estate prices rise, these assessment limits shift more of the tax burden to newer homeowners, whose properties are assessed closer to the market value. Overall, in the 29 cities with these assessment limits, new homeowners paid 30 percent more in taxes last year than those who have owned their homes for the average duration within their city, more than double the 14-percent disparity four years earlier.

The 50-State Property Tax Comparison Study explores several key factors influencing property taxes, providing a comprehensive analysis of effective property tax rates—the tax paid as a percentage of market value—in 123 cities in every U.S. state and Washington, DC.

Drawing on data for 73 large U.S. cities, the study explains why property taxes vary so widely from place to place. Reliance on the property tax is chief among the reasons. Cities with high local sales or income taxes do not need to raise as much revenue from the property tax and thus have lower property tax rates on average. For example, Bridgeport, Connecticut, has one of the highest effective tax rates on the median-valued home, while Birmingham, Alabama, has one of the lowest. But the average Birmingham resident pays 32 percent more in total local taxes when accounting for sales, income, and other local taxes.

Property values are the other crucial factor explaining differences in tax rates. Cities with low property values need to impose a higher tax rate to raise the same revenue as cities with high property values. For example, the effective tax rate on the typical home in Detroit, which has the lowest median home value in the study, is three times higher than in San Francisco, which has the highest, after accounting for assessment limits. In Detroit, to raise $3,206 per home—the national average tax bill on a median-valued home—would require an effective tax rate 23 times higher than in San Francisco.

Other drivers of variation in property tax rates include the different treatment of various classes of property, such as residential and commercial, and the level of local government spending.

Among the largest cities in each state, the average effective tax rate on a median-valued home was 1.4 percent in 2019, with wide variation across cities. Four cities have effective tax rates that are at least double the national average—Aurora (IL), Bridgeport, Newark(NJ), and Detroit. Conversely, seven cities have tax rates less than half of the average—Honolulu, Boston, Charleston (SC), Denver, Cheyenne (WY), Birmingham, and Nashville.

Commercial property tax rates on office buildings and similar properties also vary significantly across cities. The effective tax rate on a $1 million commercial property is 1.9 percent, on average, across the largest cities in each state. The highest rates are in Detroit, Providence, Chicago, and Bridgeport, where rates are at least two-thirds higher than average. Rates are less than half of the average in Cheyenne, Seattle, and Charlotte.

The report is available for download on the Lincoln Institute website:

https://www.lincolninst.edu/publications/other/50-state-property-tax-com…

 

 

Will Jason is director of communications at the Lincoln Institute.

Photograph credit: © iStockphoto/benkrut.

Webinars

Webinar Series – The Property Tax-School Funding Connection

May 18, 2020 - May 20, 2020

Offered in English

Moderator: Daphne Kenyon
Speakers: Julie Underwood, Laura Ullrich, Lynn Moak

The property tax plays a key role in the funding of public education in the U.S. In 2015-16, about 45 percent of the total revenue supporting elementary and secondary education came from local governments, and 81 percent of the local share came from property taxes. A central tenant of education finance in the U.S. is local control. A robust role for local funding is important if local citizens, through their school boards or local referenda, are going to have a meaningful voice in the operation of local schools. The consensus among public finance scholars is that the property tax has many positive attributes as a local government tax.

However, most state legislatures have enacted a variety of property tax limitations—on the property tax base, on rates, or on revenues. So how do policymakers assure that there is adequate funding for public education while maintaining a significant degree of fiscal autonomy for local school districts?

This webinar series explores the experience of three states that have enacted various types of property tax limitations and the efforts taken to ensure continued adequate funding for public education. Presenters from each state assess the effectiveness of those efforts and suggest possible policy reforms to ensure adequate funding for public education on an ongoing basis.

Speakers:

Daphne Kenyon (Resident Fellow in Tax Policy, Lincoln Institute of Land Policy) introduces the series by describing the role of the property tax in funding public education over time and across the U.S. She also serves as moderator for the series.

Julie Underwood (Professor of Education Law, Policy, and Practice and former Dean of the School of Education, University of Wisconsin-Madison) describes Wisconsin’s approach to limiting school property taxes. She also describes the increasing role of school choice across the state.

Laura Ullrich (Regional Economist, Federal Reserve Bank of Richmond) describes South Carolina’s tax swap, enacted in 2006, which reduced local property taxes and increased the state’s reliance on sales taxes. The talk focuses on the impacts of this tax swap on public education and highlights the consequences of replacing a relatively stable revenue source with a less stable one.

Lynn Moak (Managing Partner, Moak, Casey & Associates [school finance consultants]) discusses property tax restrictions and school funding legislation enacted during Texas’ most recent legislative session (HB3 signed into law in 2019). In this presentation, he also assesses the ongoing school funding challenges that remain.

Participant Outcomes:

  • Learn about how three states try to both provide adequate funding for K-12 education and appropriate property tax relief.
  • Learn about policy pitfalls and model policies that relate to school funding and property tax relief.

Details

Date
May 18, 2020 - May 20, 2020
Language
English
Registration Fee
Free
Related Links
Downloads
PowerPoint - The Property Tax-School Funding Connection: Series Introduction and Wisconsin PowerPoint - The Property Tax-School Funding Connection: South Carolina PowerPoint - The Property Tax-School Funding Connection: Texas

Keywords

Property Taxation, Public Finance, Taxation

Events

Improving Value-Based Taxation of Real Property in Latvia

July 7, 2020 - July 8, 2020

Free, offered in English

Faculty: Albina Aleksienė, Sarmīte Barvika, Paul Bidanset, Andrejs Birums, Aldis Bukss, Riël Franzsen, Rita Pētersone, Ronald Rakow, Enid Slack, Tambet Tiits, Alija Turlaja, Joan Youngman
Co-Sponsors: Riga Technical University, State Land Service of Latvia

This workshop, developed in collaboration with Riga Technical University and the State Land Service of Latvia within the Ministry of Justice, provides an opportunity for public officials in Latvia to hear presentations from academic experts and practitioners in valuation, law, and economics. The program focuses on a variety of property tax issues, including current situations and practices in the Baltic region, and offers a forum to  exchange ideas on local tax issues facing policymakers.

The agenda features sessions on valuation methods and tax equity; international experiences and challenges with alternative tax systems; approaches to residential taxation; mass valuation applications, standards, and data; the role of the property tax in sustainable land management and urban planning; considerations in tax rate setting; and enhancing communication and public awareness of tax policies. Many of the sessions will also address the impact of COVID-19 on property taxation and potential solutions.

Details

Date
July 7, 2020 - July 8, 2020
Time
7:00 a.m. - 12:20 p.m.
Language
English
Registration Fee
Free
Cost
Free
Related Links
Downloads
Agenda Lincoln Institute of Land Policy Faculty Bios Introduction, Overview of Lincoln Faculty, Goals, and Program Details: Joan Youngman and Semida Munteanu Introduction to Mass Valuation: Joan Youngman and Ron Rakow Introduction to Principles of Public Finance and Real Property Taxation: Enid Slack Valuation Methods and Tax Equity: Paul Bidanset and Ron Rakow An International Perspective on the Property Tax: Issues and Trends: Riël Franzsen Approaches to Taxing Residential Property: Ron Rakow and Riël Franzsen Current Situation and Practice in Estonia: Tambet Tiits Current Situation and Practice in Lithuania: Albina Aleksienė Valuation Result Verification: Paul Bidanset Applications of Mass Valuation Data: Albina Aleksienė The Role of the Property Tax in Sustainable Land Management and Planning: the Latvian Experience: Sarmite Barvika Considerations in Rate Setting Policies for Dwellings: Enid Slack Uniform Policies and Local Options: Riël Franzsen Methods for Expanding and Improving Data in Mass Appraisal Valuation: Paul Bidanset The Importance of Communication in Tax Policy Setting: Tambet Tiits

Keywords

Land Value Taxation, Local Government, Property Taxation, Valuation, Value-Based Taxes

Resources

Current Property Tax Trends

Property Tax Trends 2023–2024 (Catherine Collins, George Washington Institute of Public Policy)
This report provides an overview of new developments in property taxation in 2023 and 2024. Special attention is given to changes in eligibility requirements for property tax relief programs. A second focus concerns initiatives designed to improve housing affordability, such as tax incentives for new developments and support for low-income owners and renters. There is a review of measures intended to assist specific classes of taxpayers, such as natural disaster victims, seniors, disabled veterans, and those facing rapidly rising in property values. Finally, the report provides an overview of initial state responses to new Supreme Court requirements concerning the disposition of proceeds from foreclosure sales of tax delinquent properties.

Property Tax Trends 2020–2021 (Catherine Collins, George Washington Institute of Public Policy)
This report provides an overview of current trends in the property tax, including updates on recent ballot measures, the impact of Covid-19 on public transportation, tax base shifting patterns, and recent state actions to reduce the business personal property tax.

Property Tax Trends 2019–2020 (Catherine Collins, George Washington Institute of Public Policy)
This report provides an overview of current trends in the property tax, including updates on property tax actions taken by states and local governments in response to the COVID-19 crisis.

Property Tax Fundamentals

What Policy Makers Should Know About Property Taxes (Land Lines, January 2009)
Although property taxes continue to be a fundamental and important revenue source for local government, they also remain exceptionally controversial. This article discusses issues for which improved education and understanding is especially necessary.

Property Tax Rates

2013 Fifty-State Property Tax Comparison Study (Minnesota Center for Fiscal Excellence)
This study compares effective property tax rates for four classes of property located in the largest city of each state and D.C., the 50 largest cities in the United States, and a rural area of each state.

2012 Fifty-State Property Tax Comparison Study (Minnesota Center for Fiscal Excellence)
This study compares effective property tax rates for four classes of property located in the largest city of each state and D.C., the 50 largest cities in the United States, and a rural area of each state.

2011 Fifty-State Property Tax Comparison Study (Minnesota Taxpayers Association)
This study compares effective property tax rates for four classes of property located in the largest city of each state and D.C., the 50 largest cities in the United States, and a rural area of each state.

2010 Fifty-State Property Tax Comparison Study (Minnesota Taxpayers Association)
This study compares effective property tax rates for four classes of property located in the largest city of each state and D.C., the 50 largest cities in the United States, and a rural area of each state.

Estimating the Responsiveness of Residential Capital Investment to Property Tax Differentials (Lincoln Working Paper)
This paper analyzes the impact of property taxes on housing investment.

2009 Fifty-State Property Tax Comparison Study (Minnesota Taxpayers Association)
This survey compares property tax burdens in different regions and for different types of property in all the states and the District of Columbia.

A Reconnaissance of Currently Available Measures of Effective Property Tax Rates (Lincoln Working Paper)
Findings of a 50 state survey investigating available information on effective tax rates, and how those rates are calculated and reported.

Tax Limits

Property Tax Assessment Limits: Lessons from Thirty Years of Experience (Lincoln Policy Focus Report)
This study examines the structure and effects of different property tax limitation measures.

Property Tax Limitations and Local Fiscal Conditions: The Impact of Proposition 2 1/2 in Massachusetts (Lincoln Working Paper)
This is a study of the tax limitation measure introduced by ballot initiative in Massachusetts and its effect on local government finance.

The Algebra of Tax Burden Shifts from Assessment Limitations (Lincoln Working Paper)
A mathematical model that demonstrates how taxes must rise for some groups in order to provide tax relief to others.

The Variety of Property Tax Limits (State Tax Notes, November 2007)
Limitations on taxable values will not prevent tax increases if rates rise, and rate limitations may not restrict taxes if values rise. Restricting the total tax burden will not address problems in its distribution among taxpayers. Conversely, an equitably distributed burden may still rise rapidly if total spending increases substantially.

Surprise! An Unintended Consequence of Assessment Limitations (Land Lines, July 2007)
Early experiences with assessment limitation measures reveal an unanticipated result: some property owners seemingly targeted to benefit from lower assessments may be harmed instead.

Taxable Personal Property

Tax Flights (Lincoln Working Paper)
This report considers the special challenges posed by attempts to tax moveable property.

Real Estate Transfer Charges

Taxing Property Transactions Versus Taxing Property Ownership (Chapter 7 of Challenging the Conventional Wisdom on the Property Tax, Lincoln Book 2010)
This chapter examines the variety of transfer tax programs currently in use in the United States and compares them to annual property taxes in terms of equity, efficiency, and revenue potential and stability.

Legal Definition of Real Property

The Property Tax Base

Assessed Values by Property Class

Analysis of Detroit Property Tax Revenue Options (Lincoln Working Paper)
This paper considers fiscal alternatives available to a municipality facing a declining property tax base.

The Value of Residential Land and Structures During the Great Housing Boom and Bust (Lincoln Working Paper)
This is a major study of land and building values over the course of the current economic cycle.

Value Standard and Assessment Ratios

Assessment Regressivity: A Tale of Two Illinois Counties (Land Lines, January 2011)
This article provides an econometric analysis of assessment sale ratios in Illinois.

Property Tax Relief and Incentive Programs

Are Property Tax Abatements for Business Structures an Indirect Form of Land Value Taxation (Lincoln Working Paper)
This paper considers whether business tax incentives that generally reduce taxes on new construction may serve as a step towards land value taxation.

Tax Treatment of Agricultural Property

Preferential Assessment of Rural Lands in the United States (Lincoln Working Paper)
This paper provides an overview and critical analysis of special property tax provisions for agricultural land.

Taxing and Untaxing Land: Current Use Assessment of Farmland (State Tax Notes, September 2005)
The debate over appropriate property tax treatment of farmland touches on many complex issues, and tax and land policies addressing them often have contradictory elements as well. Nearly a half-century of experience with agricultural taxes based on use value rather than market value provides a vantage point from which to consider these controversies.

Current-Use Property Assessment and Land Development (Lincoln Working Paper)
This paper seeks to explore whether current use assessment can protect rural lands from development, surveys the actual penalties operative in the various states during 2002, and speculates about which states are more likely to have effective land preservation programs.

Incentives for Economic Development

Rethinking Property Tax Incentives for Business (Lincoln Policy Focus Report)
This policy focus report provides an overview of property tax incentives offered to businesses to promote economic development.

A Duration Analysis of Tax Increment Finance District Lifespans: The Case of Wisconsin (Lincoln Working Paper)
An empirical study of tax increment financing in times of declining value increments.

TIF at a Turning Point: Defining Debt Down (Lincoln Working Paper)
A review of arguments for and against the use of tax increment financing as a means of authorizing municipal debt.

Tax Increment Financing (Land Lines, January 2006)
Tax increment financing (TIF), designed to promote economic development by earmarking property tax revenue from increases in assessed values within a designated TIF district. Empirical analysis, using data from Illinois, suggests that the non-TIF areas of municipalities that use TIF grow no more rapidly, and perhaps more slowly, than similar municipalities that do not use TIF.

Incentives for Specific Property Improvements

Preferential Property Tax Programs

State Income Tax Credits for Conservation Easements: Do Additional Credits Create Additional Value? (Lincoln Working Paper)
This report analyzes the effect of state credits in encouraging donation of conservation easements.

Preferential Property Tax Treatment of Land (Lincoln Working Paper)
This report reviews the effectiveness of preferential taxation to achieve its intended goals, and describes current preferential tax programs for agricultural, forest, open space, recreational and other vacant land uses in the United States.

Residential Property Tax Relief Programs

Residential Property Tax Relief Programs (2012): Summary Table on Exemptions and Credits
Homestead exemptions and property tax credits are common ways for states to ease the tax burden on homeowners. This table summarizes the detailed information presented in the Residential Property Tax Relief Programs section of Significant Features of the Property Tax. It includes data for 167 programs, with information on the value of exemptions expressed in terms of market value; criteria related to age, disability, income, and veteran status; the type of taxes affected; whether tax loss is borne by state or local government; local options; and more. The summary table makes it easy to conduct quantitative analysis of these programs or make quick state-by-state comparisons, because it accounts for differences across states in assessment ratios and describes the details of each program using a series of variables instead of relying on text descriptions.

Are Property Taxes Forcing the Elderly Out of Their Homes (Lincoln Working Paper)
Research in Wisconsin indicates that for homeowners under the age of 80 increases in the property tax had almost no impact on decisions to move, and only 1 in 600 Wisconsin homeowners over the age of 79 moved because their property taxes grew at an above-median rate.

Property Tax Relief: The Case for Circuit Breakers (Land Lines, April 2010)
This article argues that most efforts to provide property tax relief, such as assessment limits and homestead exemptions, are inefficient and create substantial unintended consequences. Circuit breaker programs deserve renewed attention because they target aid to those who need it most.

A Critical Review of Property Tax Relief in Wisconsin: The School Levy Credit and the First Dollar Credit (Lincoln Working Paper)
Analysis of Wisconsin property tax data finds that a substantial proportion of tax credits go to non-residents, to high-income individuals, and to others not in serious need of property tax relief.

Property Tax Circuit Breakers: Fair and Cost Effective Relief for Taxpayers (Lincoln Policy Focus Report)
By targeting property relief to those most in need, circuit breakers promote tax equity at minimal cost to state and local budgets. Recommendations for the best design for property tax circuit breakers are included in this policy focus report.

More…

Payments in Lieu of Taxes By Nonprofits: Case Studies (State Tax Notes article)
This article provides a brief overview of payments in lieu of taxes by nonprofits and case studies for six cities: Baltimore (MD), Boston (MA), New Orleans (LA), Princeton (NJ), Providence (RI), and Worcester (MA).

Recession, Recovery, and State and Local Finances (Lincoln Working Paper)
A review of the effect of the current economic downturn on state and local revenues.

The Effect of Increasing the Number of Property Tax Payment Installments on the Rate of Property Tax Delinquency (Lincoln Working Paper)
An examination of the impact of different payment options on tax compliance.

The Economic Implications of House Price Capitalization: A Survey of an Emerging Literature (Lincoln Working Paper)
A review of current literature analyzing the effect of various economic factors on residential property values.

The Impact of the Great Recession and the Housing Crisis on the Financing of America’s Largest Cities (Lincoln Working Paper)
The housing crisis and the recession have placed tremendous fiscal pressure on the nation’s central cities. This paper uses data on the financing of the nation’s largest central cities from 1997 to 2008 to forecast the impact of the recession and the housing crisis on central city expenditures between 2009 and 2013.

Revenue Diversification and the Financing of Large American Central Cities (Lincoln Working Paper)
This paper analyzes the financing of the nation’s largest central cities from 1997 to 2008. It explores whether revenue diversification supports higher levels of government spending and also examines vertical tax competition between states and their large cities.

The Effect of Land Value Ratio on Property Tax Protests and the Effects of Protests on Assessment Uniformity (Lincoln Working Paper)
This paper presents new research on assessment protests and their possible relationship to land values.

Centralization of School Finance and Property Values (Lincoln Working Paper)
A case study of Vermont presenting lessons based on research about the impact on property values of changes the structure of school finance.

Thirty Years of Judicial Education on Property Tax Issues (Land Lines, July 2010)
Reflections on the history of the National Conference of State Tax Judges.

Payments in Lieu of Taxes: Balancing Municipal and Nonprofit Interests (Lincoln Policy Focus Report)
Payments in lieu of taxes are payments made voluntarily by tax-exempt nonprofits as a substitute for property taxes. This report provides case studies of several municialities that have pursued PILOTs in the past decade, as well as a broader picture of PILOT use in the United States.

Assessing the Theory and Practice of Land Value Taxation (Lincoln Policy Focus Report)
The land value tax is a variant of the property tax that imposes a higher tax rate on land than on improvements, or taxes only the land value. This report summarizes research on the topic and presents recommendations for local policy makers considering alternative property tax measures.

The Property Tax – School Funding Dilemma (Lincoln Policy Focus Report)
There is an active policy debate across the country regarding funding public schools with property tax dollars. This report addresses the twin challenges of court mandates regarding school funding and constituent pressure to lower property taxes. It also corrects some common misconceptions through a critical analysis of nine myths regarding school funding litigation, property tax characteristics, and the state role in funding education.

The Valuation of Federally Subsidized Housing: Ten Questions for the Property Tax (Lincoln Working Paper)
The enormous volume of thoughtful legal analysis on the complex federal incentives for private investment in low- and moderate-income housing offers insights into issues beyond the valuation of subsidized housing. Many subsidized developments are not in any simple sense public housing. The federal government has long offered incentives for private parties to own and operate low- and moderate-income rental apartments as a financial investment. These structures are generally not tax-exempt, and courts have struggled to characterize them for property tax purposes. This paper examines the questions and implications raised by the decades of judicial decisions on the appropriate treatment of these properties and includes an appendix with examples of cases and legislation addressing the taxation of subsidized rental housing in 40 states.

Centralization of School Finance and Property Values (Lincoln Working Paper)
In June 1997 the elected leaders of Vermont enacted Act 60, potentially the most radical reform of a state’s system of public school financing since the changes in California in the late 1970s. Little has been known about the effects on property values of changes like those that occurred in Vermont – which combined redistribution of education spending, a statewide property tax, and limits on property tax liabilities based on the taxpayer’s income. This research closes that knowledge gap by quantifying the capitalization effects of Act 60.

Private Conservation Easements: A Record of Achievements and the Challenges Ahead (Land Lines, October 2009)
A conservation easement is a restriction on land that prevents the owner of the burdened property from altering the natural, ecological, open, or scenic attributes of the property. Private conservation easements have become a major factor in preservation efforts. They have made a positive impact on the landscape of today and tomorrow. With some modifications in their form and use, conservation easements can become an even more powerful vehicle to ensure natural preservation while serving the public interest.

Reinventing Conservation Easements (Land Lines, October 2009)
Conservations easements are a valuable land protection tool (complementing regulation, land acquisition, and tax policies), but the laws and conventions governing conservation easements require reforms to ensure and sustain their public benefits.

Who Pays the Property Tax? (Land Lines, April 2006)
This article examines the “economic incidence” of the property tax, that is, who actually bears the burden of the tax. The classic example is a landlord who pays the tax but raises rent to do so. In the same context, “capitalization” of property taxes into the market value of real estate is discussed and analyzed.

Local Property Tax: An Assessment (Land Lines, May 1999)
“The property tax is, in my view, a good local tax, though it is far from perfect.” Professor Wallace E. Oates reviews property tax issues and some “telling but, in part, misplaced criticism.”

Successful Property Tax Reform: The Case of Massachusetts (Lincoln Online Course)
Registration required. This course examines the deep problems of the Massachusetts property tax in the 1970s and the subsequent reforms that created one of the most functional and fair property tax systems in the United States.

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