If a local property tax increase is fully capitalized, property owners at the time of the increase cannot shift any of the current or future tax increase to buyers if they sell the property.

Question

Quizplus · Accepted Answer

When a local property tax increase is fully capitalized, the value of the property decreases by the present value of the future tax increase. As a result, property owners cannot shift any of the current or future tax increase to buyers if they sell the property since the increase has already been accounted for in the property's value.

If a Local Property Tax Increase Is Fully Capitalized, Property