State and local government tax revenues dropped steeply following the most severe housing market contraction since the Great Depression. The authors identify five main channels through which the housing market affects state and local tax revenues: property tax revenues, transfer tax revenues, sales tax revenues, and personal income tax revenues. They find that property tax revenues do not tend to decrease following house price declines. The other four channels have had a relatively modest effect on state tax revenues. These channels jointly reduced tax revenues by $15 billion from 2005 to 2009, which is about 2% of total state own-source revenues in 2005. Charts and tables. This is a print on demand publication.The coefficient on the value of real estate transactions is close to the expected value of 1 and the 95% confidence interval easily ... The house price coefficient is equal to 1.6, while the home sales volume coefficient is equal to 0.7. It is possible that the house price measure is greater than one because it is correlated with movements in the commercial real estate market.12 At the same time, measurementanbsp;...
|Title||:||Housing Crisis and State and Local Government Tax Revenue|
|Publisher||:||DIANE Publishing - 2011-05|