Abstract

There is a substantial body of literature regarding the effects of administrative burdens on the take-up of safety-net programs and the role of organized groups in this process. I investigate similar issues in the context of property tax assessment appeals. Disadvantaged groups spend well over the recommended 30% of their income on housing costs that include property tax, and, on top of that, assessors often overestimate lower-value properties. Appeals may provide some relief, but the process can be burdensome. Certain localities give condominium associations the right to file one joint appeal on behalf of all unit owners. I hypothesize that this rule reduces burdens for condominium units and causes them to appeal more frequently than houses, resulting in a distributive effect that depends on the local context. I present supporting evidence from two case studies in two locations: New York City, which allows joint appeals, and Allegheny County, Pennsylvania (Pittsburgh and surroundings), which does not. Thus, while administrative burdens can span diverse contexts, engaging a third party to assist potential beneficiaries consistently increases the take-up.

Highlights

  • There is a substantial body of literature regarding the effects of administrative burdens on the takeup of safety-net programs and the role of organized groups in this process

  • Unlike Ordinary Least Squares regressions (OLS), which fit within a straight line through the data, locally weighted regressions form a smooth curve by fitting a model at each point in the data using explanatory variable values near this point

  • I analyze the effect of organized groups, such as condominium associations, on participation in assessment appeals

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Summary

Introduction

There is a substantial body of literature regarding the effects of administrative burdens on the takeup of safety-net programs and the role of organized groups in this process. Some localities give condominium associations the right to file one property tax assessment appeal on behalf of all unit owners, which I will call the joint appeal rule. Joint appeals cause owners of condominium units to appeal their assessments more frequently than owners of houses.

Results
Conclusion

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