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Vol. 65, No. 4, pp. 303-317 (2014)

“Is the Property Tax a Capital Tax? An Investigation of the “Capital Tax View” of the Property Tax”
Tomomi Miyazaki (Graduate School of Economics, Kobe University), Motohiro Sato (Graduate School of Economics, Hitotsubashi University)

This paper examines whether or not the capital owners bear the burden of property taxes levied on capital (housing) using Japanese regional (prefectural) data. To do so, we follow the empirical framework of Wassmer (1993), which examines “Capital Tax View” of a property taxes. Empirical results show that while the effects of property taxes on capital are estimated to be negative and significant on the asset price of house, but have insignificant effect on the land price.