Property tax limitations and mobility
Subtitle: the lock-in effect of California's proposition 13
By: Nada Wasi, Michelle J. White.
Contributors: White, Michelle J.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11108; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11108.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Real property tax -- California.; Tax and expenditure limitations -- California.; Housing -- Economic aspects -- California.; Migration, Internal -- Economic aspects -- California.
Description: "Proposition 13, adopted by California voters in 1978, mandates a property tax rate of one percent, requires that properties be assessed at market value at the time of sale, and allows assessments to rise by no more than 2% per year until the next sale.  In this paper, we examine how Prop 13 has affected the average tenure length of owners and renters in California versus in other states.  We find that from 1970 to 2000, the average tenure length of owners and renters in California increased by 1.04 years and .79 years, respectively, relative to the comparison states.  We also find substantial variation in the response to Prop 13, with African-American households responding more than households of other races and migrants responding more than native-born households.  Among owner-occupiers, the response to Prop 13 increases sharply as the size of the subsidy rises.  Homeowners living in inland California cities such as Bakersfield receive Prop 13 subsidies averaging only $110/year and their average tenure length increased by only .11 years in 2000, but owners living in coastal California cities receive Prop 13 subsidies averaging in the thousands of dollars and their average tenure length increased by 2 to 3 years"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 2/17/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.