It occurs due to the change in effective tax rates in the form of property tax amount related to the market value among the groups of property owners. It is known that the appraised market value in the form of yardstick for the property tax equity was used because it is considered as a reasonable way (Dennis-Escoffier & Fortin, 2007; Mikesell, 2011; Nelson, Collins, & Healy, 2008).

Economic Effects

The tax on property and buildings apart from the land distorts the resource allocation with the presence of older property. The increase in property tax rates because the decline in the desirability of placing capital funds into new buildings while creating an incentive against the upgrading of quality. It further leads to the construction of smaller rooms and apartments as compared to the ones that were not required to pay taxes. Certain communities can have tax bases above averages relating to...
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