Tax base erosion and inequity from Michigan's assessment growth limit: The case of Detroit

Arbeitspapier

In this paper we examine the degree to which Michigan's property value assessment growth cap has eroded the tax base and created substantial differences in effective tax rates among residential properties within the City of Detroit. While the analysis focuses on a specific city with significant tax base erosion challenges, it is relevant to other cities in Michigan and across the nation, particularly in states that impose assessment growth limits. Using quantile regression techniques, we examine how an assessment growth cap alters effective tax rate distributions within and across property value groups. Results show that the cap creates a wide range of effective tax rates across properties of similar value (horizontal inequity), and similar tax payments for properties of differing values (vertical inequity).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4098

Classification and Topics

• Classification: Wirtschaft ; State and Local Taxation, Subsidies, and Revenue
• Subject: property tax ; assessment growth limit ; equity ; quantile regression ; Grundsteuer ; Immobilienbewertung ; Steuerbemessung ; Steuerbelastung ; Soziale Ungleichheit ; Schätzung ; Detroit (Mich.) ; Michigan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hodge, Timothy R. ; Skidmore, Mark ; Sands, Gary ; McMillen, Daniel
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/69527
• Last update: 10.03.2025, 11:45 AM CET