Housing demolition and property tax delinquency

Evidence from Detroit

Bibliographic Data

ID12066529
AuthorsCamila Alvayay Torrejón (0000-0002-9117-3163, Michigan State University, corresponding author), Dusan Paredes (0000-0002-7090-5919, Universidad Católica del Norte), Monique Skidmore (0000-0002-6396-9519, Michigan State University)
Year2020
Volume43
Issue5
Pages702-723
Publication date2020-01-14
Open AccessNo
TypeARTICLE
VenueJournal of Urban Affairs (JOURNAL)
Journal identifiersISSN: 0735-2166 • E-ISSN: 1467-9906
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/07352166.2019.1697183
OpenAlexW2999028015
LanguageEN
Citations received1
References cited16

The purpose of this article is to evaluate the degree to which the demolition of low-quality structures affects property tax compliance in Detroit. During the real estate crisis, the rate of property tax delinquency in the city exceeded 50%. The demolition of dilapidated structures could lead to improvements in tax compliance in two ways. The first is through an amenity effect: removal of blighted structures improves the neighborhood and thus may increase the likelihood that neighbors pay their property taxes. The second is via the existence of a peer effect in property tax compliance decisions. We use a 6-year panel database to examine the degree to which demolitions affect nearby residential property tax delinquency. Even though we are unable to disentangle the amenity and peer effects, our analysis shows that when a dilapidated property is demolished, tax delinquency within the neighborhood is reduced, providing evidence that demolitions improve tax compliance

Business · Civil engineering · Criminology · Demolition · Economics · Juvenile delinquency · Property tax · Public economics · Tax reform · Engineering · Fiscal Policy and Economic Growth · Housing Market and Economics · Psychology · Taxation and Compliance Studies

Tools

Open DOISci-Hub