Property Taxes and Polycentricity

Ross, Justin M.; Hummel, Daniel

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Property Taxes and Polycentricity

The Annual Proceedings of the Wealth and Well-Being of Nations: Volume IV (2012), Forthcoming

17 Pages Posted: 11 Oct 2012

See all articles by Justin M. Ross

Justin M. Ross

Indiana University - School of Public & Environmental Affairs

Daniel Hummel

Florida Atlantic University School of Public Administration

There are 2 versions of this paper

Date Written: March 5, 2012

Abstract

Elinor and Vincent Ostrom have dedicated their professional careers to understanding polycentric forms of public administration. From a public finance perspective, the Ostrom-polycentric system represents a number of challenges. America’s answer to the public financing of polycentric public administration has been the real property tax, which has characteristics that are unique among taxes. This essay describes these unique characteristics as they pertain to the permissibility of multiple, decentralized, and overlapping polycentric nodes of public administration that each maintain a financial independence necessary for local autonomy. We conclude that reforms aimed at eliminating the property tax will ultimately undermine polycentric public administration as well.

Keywords: Property Taxes, Democracy, Fiscal Federalism

JEL Classification: H71, H27

Suggested Citation: Suggested Citation

Ross, Justin M. and Hummel, Daniel, Property Taxes and Polycentricity (March 5, 2012). The Annual Proceedings of the Wealth and Well-Being of Nations: Volume IV (2012), Forthcoming, Available at SSRN: https://ssrn.com/abstract=2159577