PROPERTY TAXATION, PROPERTY BASE, AND PROPERTY VALUE - AN EMPIRICAL-TEST OF THE NEW VIEW

The ''Traditional, '' ''New, '' and ''Benefit- Views of ProPerty taxat ion yield different predictions in regard to the effects of property t axation. An empirical test for evidence on the predicted effects of th e New View is given. Results support the New View and indicate that (1 ) the greater the positive differential between a city's rate of prope rty taxation and the nation's average rate, the smaller the amount of capital in. the city and the smaller the per-unit market value of its property tax base; and (2) the higher the average rate of property tax ation in the country, the lower the return to all property. Simulation s regarding revenue alternatives to the property tax are also provided .