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Beggar Thy Neighbor? Property Taxation of Vacation Homes

Anderson, Nathan B.


Owners of vacation homes pay local property taxes, yet cannot vote on local referenda. From the standpoint of full–time residents, significant numbers of vacation homes reduce the real costs of public spending, since vacation home owners pay property taxes but consume very few public services. A one–time change in Minnesota tax assessments of vacation property in 1996 affords the opportunity to identify the effect of vacation property on local spending. The results suggest that a one–percent increase in the concentration of vacation homes in local tax base is associated with a 1.5–percent increase in per–capita spending.


Anderson, Nathan B. (2006), Beggar Thy Neighbor? Property Taxation of Vacation Homes, National Tax Journal, 59:4, pp. 757-80

DOI: dx.doi.org/10.17310/ntj.2006.4.01