Clamor for property tax relief is universal among the states. Such relief is
generally considered to be egalitarian, although seldom has any attempt been
made to study its redistributive effects, particularly between homeowners and
tenants. This study examines the redistributive effects of property tax relief
measures enacted by the state of New Jersey in 1976. The results indicate that
the relief measures engender a considerable subsidy from tenants to homeowners. Adoption of property tax relief measures prevailing in New Jersey
would lead to a substantial reinforcement of the tax preferences already
enjoyed by homeowners under the federal income tax legislation.
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