An Empirical Analysis of the Property Tax Appeals Process

Doerner, William and Ihlanfeldt, Keith (2014): An Empirical Analysis of the Property Tax Appeals Process. Forthcoming in: Journal of Property Tax Assessment & Administration , Vol. 10, No. 4 (2014)

Abstract

Property tax appeals have increased dramatically at significant cost to local governments. Little is known about whether or how well the appeals process resolves potential assessment errors. This paper investigates the efficiency and equity of this process. Regarding the efficiency of correcting assessment error, reductions are granted for a majority of appealing homeowners who are overassessed but also for homeowners who are not overassessed, leaving them underassessed or further underassessed. Regarding the fairness of the appeals process, homeowners from particular neighborhoods receive assessment reductions more often. Tax representatives play an important role in explaining the advantage enjoyed by these homeowners.

• Item Type: MPRA Paper
• Language: English
• Keywords: appeal; property tax; assessment error
• Subjects: D - Microeconomics > D7 - Analysis of Collective Decision-Making > D70 - General; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R30 - General

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