[ NTA logo ]

Do Caps on Increases in Assessed Values Create a Lock-in Effect? Evidence From Florida’s Amendment One

Ihlanfeldt, Keith R.

Abstract:

The property tax savings provided by assessment caps are generally lost when homeowners move. There is, therefore, a concern that homeowners get “locked-in” to their current home. Using data from Florida, the results presented in this paper show that the lock-in effect is nontrivial in magnitude, especially for homeowners in single-family homes (in comparison to condominiums) and those located in jurisdictions with relatively low property tax rates.

Citation

Ihlanfeldt, Keith R. (2011), Do Caps on Increases in Assessed Values Create a Lock-in Effect? Evidence From Florida’s Amendment One, National Tax Journal, 64:1, pp. 8-25

DOI: dx.doi.org/10.17310/ntj.2011.1.01