Do homeowners care about tax relief? Property tax relief and tax perceptions in the United States

Abstract

This study examines whether receiving property tax relief contributes to homeowner's support for local taxes and spending. Using a survey sample of 10,655 homeowners in 40 US States in 2022, I find a negative association between property tax relief and opposition against property tax. Also, homeowners who receive property tax relief are more likely to support higher local taxes. Homeowners who receive tax reduction display a weaker preference for local budget cuts and a stronger preference for tax increases than homeowners who do not. These results suggest that tax relief may contribute to a higher tolerance for tax increases.