THE IMPACT OF POPULATION GROWTH ON RESIDENTIAL PROPERTY TAXES

A multivariate model of the effect of population on local fiscal behavior, assessed value of property and average single family home values is estimated using cross-sectional data from Oregon. Regression results suggest that property tax levies are unit elastic with respect to population, that the total assessed value of property increases less than proportionally with population, and that the average value of a single family home increases with population. These results imply a positive relationship between population and both property tax rates and the tax bill of the average single family homeowner. Ceteris paribus, increases in average residential property taxes are associated with increases in population