Abstract
In this paper we endeavor to clear up the direct impact of the real estate market downturn on the local tax receipts from real estate. So, we canvass the “trend growth” of revenues from property taxes and changes in tax regimes over time in association with the appreciation and contraction of properties’ prices, also pointing out the role of speculation in real estate markets for housing and fiscal bubbles and the benefits of levying the real estate at market value.
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