TY  - RPRT
        AU  - Löffler, Max
AU  - Siegloch, Sebastian
        TI  - Welfare Effects of Property Taxation
        PY  - 2021/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14195
        UR  - https://www.iza.org/publications/dp14195
        AB  - We analyze the welfare implications of property taxation. Using a sufficient statistics approach, we show that the tax incidence depends on how housing prices, labor and other types of incomes as well as public services respond to property tax changes. Empirically, we exploit the German institutional setting with 5,200 municipal tax reforms for identification. We find that higher taxes are fully passed on to rental prices after three years. The pass-through is lower when housing supply is inelastic. Combining reduced form estimates with our theoretical framework, we simulate the welfare effects of property taxes and show that they are regressive.
        KW  - property taxation
KW  - welfare
KW  - tax incidence
KW  - local labor markets
KW  - rental housing
        ER  -