Keywords

assessment uniformity, horizontal equity, property tax appraisal

Abstract

Researchers have carefully examined assessment unifor- mity in ad valorem taxation for single-family residential properties and they have frequently reported nonuniform outcomes in the appraisal of these properties. This study analyzes the uniformity of assessed valuations across apartment, industrial, office, and retail properties in Maricopa County (Metropolitan Phoenix), Arizona. Specifically, we investigate horizontal equity, which results when the assessment ratio (assessed value/sales price) is uniform across properties with similar market values. We examine horizontal equity over a five-and-one-half-year period (January 1998-June 2003). After applying both parametric and nonparametric tests, we find statistically significant evidence of horizontal inequity. We find that retail properties are underassessed compared to apartments, and office properties are over assessed compared to apartments; however, we find little difference between industrial and apartment properties. We also find that properties owned by out-of-state residents are overassessed compared to properties owned by in-state residents

Original Publication Citation

Cornia, G. and B. Slade, 2006, Horizontal Inequity and Property Taxation on Apartment, Industrial, Office, and Retail Properties, National Tax Journal, LIX:1, pp. 33 – 55.

Document Type

Peer-Reviewed Article

Publication Date

2006

Publisher

National Tax Journal

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Full Professor

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