Does the Acquisition System of Property Taxation Increase Neighborhood Social Capital?

17 Pages Posted: 24 Jan 2012

See all articles by Richard T. Boylan

Richard T. Boylan

Rice University - Department of Economics

Date Written: January 23, 2012

Abstract

Acquisition systems of property taxation can lead individuals who just bought a home to pay five times more property taxes than neighbors who own comparable homes (Nordlinger v. Hahn). These large inequities seem to violate the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution. However, the U.S. Supreme Court has ruled such inequities constitutional, because they serve the legitimate state interest of encouraging neighborhood preservation. In this paper we examine whether acquisition systems of property taxation increase neighborhood specific social capital investments; specifically, whether they increase the likelihood that parents put their elementary school children in public school and carpool. We find no evidence in support of this hypothesis. On the contrary, we find that households that benefit from lower taxes are less likely to send their children to public elementary schools and to carpool.

Keywords: Property taxes, social capital

JEL Classification: H2

Suggested Citation

Boylan, Richard T., Does the Acquisition System of Property Taxation Increase Neighborhood Social Capital? (January 23, 2012). Available at SSRN: https://ssrn.com/abstract=1990505 or http://dx.doi.org/10.2139/ssrn.1990505

Richard T. Boylan (Contact Author)

Rice University - Department of Economics ( email )

6100 South Main Street
Houston, TX 77005
United States

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
27
Abstract Views
346
PlumX Metrics