Restraining the Leviathan: property tax limitations in Massachusetts
Abstract: We examine the effects of Proposition 2-1/2--a property tax limitation law approved by Massachusetts voters in 1980--and assess voter satisfaction with these effects. We find that the proposition had a smaller effect on local revenues and spending than expected, as a result of both amendments to the law and a strong economy. Voters in 1980 believed there was significant waste in local government, partly because of an inability to monitor local officials. Proposition 2-1/2 curbed these agency losses, but direct local override votes and municipal expenditure patterns imply that the proposition initially reduced spending more than voters wanted.
File(s): File format is text/html http://www.federalreserve.gov/pubs/feds/1997/199747/199747abs.html
File(s): File format is application/pdf http://www.federalreserve.gov/pubs/feds/1997/199747/199747pap.pdf
Part of Series: Finance and Economics Discussion Series
Publication Date: 1997