INCIDENCE OF THE PROPERTY-TAX ON COMMERCIAL REAL-ESTATE - THE CASE OFDOWNTOWN CHICAGO

Authors
MCDONALD JF
Citation
Jf. Mcdonald, INCIDENCE OF THE PROPERTY-TAX ON COMMERCIAL REAL-ESTATE - THE CASE OFDOWNTOWN CHICAGO, National tax journal, 46(2), 1993, pp. 109-120
Citations number
16
Categorie Soggetti
Economics,"Business Finance
Journal title
National tax journal → ACNP
ISSN journal
00280283
Volume
46
Issue
2
Year of publication
1993
Pages
109 - 120
Database
ISI
SICI code
0028-0283(1993)46:2<109:IOTPOC>2.0.ZU;2-D
Abstract
This paper presents an empirical study of office rents and property fo r individual buildings in down-taxes town Chicago in 1991. The results show that 45 percent of property tax differentials are shifted forwar d to tenants as higher gross rents. Application of the Hausman (1978) test for specification error reveals that assessed value per square fo ot (the base for the property tax) is exogenous with respect to gross rent per square foot.