The Effects of Property Taxes and Local Public Services upon Residential Property Values in Small Wisconsin Cities

Abstract

AbstractContrary to the results of similar studies in metropolitan areas, this investigation found no evidence that local property taxes and public expenditures were capitalized into the value of owner‐occupied homes in small cities despite their considerable dependence upon the property tax. This does not imply that residents of small cities are insensitive to fiscal differences but rather is evidence of the more elastic supply of land for housing in nonmetropolitan communities.