Other People's Taxes: Nonresident Voters and Statewide Limitation of Local Government

B-Tier
Journal: Journal of Law and Economics
Year: 2004
Volume: 47
Issue: 2
Pages: 453-76

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Why would voters resort to a statewide tax limitation to force change in their own local government? This paper develops and tests the hypothesis that property tax limitations succeeded because they allowed voters to lower tax rates in other communities. Statewide limitations effectively extend the voting franchise to individuals who have no standing in local elections. Voters may have preferences for tax and expenditure levels in other jurisdictions because they receive rents from employment in those jurisdictions, because they directly own taxable assets in those jurisdictions, or because changes in other jurisdictions might influence their own residential location choice. Empirical tests of this hypothesis focus on the Massachusetts experience with Proposition 2 1/2, which passed in 1980. Voting patterns, household mobility patterns, and postproposition growth in property values all support the nonresident hypothesis.

Technical Details

RePEc Handle
repec:ucp:jlawec:y:2004:v:47:i:2:p:453-76
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-29