Optimal tax theory and the taxation of housing in the US and the UK

First, we survey recent research in the application of optimal tax theory to housing. This work suggests that the under-taxation of housing for owner occupation distorts investment so that owner occupiers are encouraged to over-invest in housing. Simulations of the US economy suggest that this is true there. But, the theoretical work excludes consideration of land and the simulations exclude consideration of taxes other than income taxes. These exclusions are important for the US and UK economies. In the US, the property tax is relatively high. We argue that excluding the property tax is wrong, so that, when the property tax is taken into account, owner occupied housing is not undertaxed in the US. In the UK, property taxes are relatively low but the cost of land has been increasing in real terms for forty years as a result of a policy of constraining land for development. The price of land for housing is now higher than elsewhere. Effectively, an implicit tax is paid by first time buyers which has reduced housing investment. When land is taken into account over-investment in housing is not encouraged in the UK either.

Which School Attributes Matter? The Influence of School District Performance and Demographic Composition on Property Values

Increasing levels of segregation in American schools raises the question: do home buyers pay for test scores or demographic composition? This paper uses Connecticut panel data spanning eleven years from 1994 to 2004 to ascertain the relationship between property values and explanatory variables that include school district performance and demographic attributes, such as racial and ethnic composition of the student body. Town and census tract fixed effects are included to control for neighborhood unobservables. The effect of changes in school district attributes is also examined over a decade long time frame in order to focus on the effect of long run changes, which are more likely to be capitalized into prices. The study finds strong evidence that increases in percent Hispanic has a negative effect on housing prices in Connecticut, but mixed evidence concerning the impact of test scores on property values. Evidence is also found to suggest that student test scores have increased in importance for explaining housing prices in recent years while the importance of percent Hispanic has declined. Finally, the study finds that estimates of property tax capitalization increase substantially when the analysis focuses on long run changes.

[ Property act], 1787

Copy of act pertaining to taking of property for failure to pay taxes. Signed: Alexander Martin and John Sitgreaves.

Tax relief for real estate, /

Mode of access: Internet.

Tax rates, San Diego County, California /

Vol. for 1918 includes a table of tax rates in San Diego County from 1874 to 1918.

Land and its distribution : a discussion of private ownership of land and state-landlordism : with a proposition to so modify the present system, still retaining private ownership, as to eliminate the principal economic abuses to-day springing from property to land.

Mode of access: Internet.

A regulatory view of deferred taxes and investment tax credits /

"November, 1983"--Cover.

Equalized assessed valuation per pupil and tax rates descending order ... Illinois public schools.

Title varies slightly.

Illinois tax rate and levy manual /

Mode of access: Internet.

Preservation tax incentives for historic buildings /

Shipping list no.: 97-0065-P.

Tax administration : tax law compliance of churches and tax-exempt religious organizations /

"GAO/GGD-88-84."

Tax incentives to train or retrain the work force /

"July 13, 1990 ; revised August 17, 1993."

Tax reform proposals. hearing before the Committee on Finance, United States Senate, Ninety-ninth Congress, first session, June 26, 1985.

Shipping list no: 86-162-P.

Tax aspects of patents, copyrights and trademarks /

Includes 1967 supplement. Tax aspects of patents, copyrights and trademarks. (11 p. 21 cm.).

Work Opportunity and Welfare-to-Work Tax Credits /

Cover title.