The impact of property taxes and property tax classification on business activity in the Chicago metropolitan area

Richard F. Dye*, Therese J. McGuire, David F. Merriman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

22 Scopus citations

Abstract

The City of Chicago and the inner suburbs grew much more slowly than the outer suburbs in recent decades. In the central country of the metropolitan area, commercial and industrial property is "classified," in that it is assessed at a higher ratio of market value than residential property. Classification is not used in the surrounding suburban counties. The empirical analysis finds evidence consistent with the notion that property tax classification contributes to differential rates of economic growth. High property tax rates lead to significantly slower growth rates for employment, commercial property, and industrial property.

Original languageEnglish (US)
Pages (from-to)757-777
Number of pages21
JournalJournal of Regional Science
Volume41
Issue number4
DOIs
StatePublished - 2001

ASJC Scopus subject areas

  • Development
  • Environmental Science (miscellaneous)

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