TAX INCIDENCE AND RENTAL HOUSING: A SURVEY AND CRITIQUE OF RESEARCH

A longstanding question in economic research has been the incidence of taxes on land and on developed parcels of real estate. In the case of agricultural land, is it the landlord or the tenant farmer who ultimately pays a land tax? In the case of urban rental housing, is it the apartment owner or the renter who pays the property tax? This paper surveys the modern economic literature that has addressed these questions. Although some progress has been made in providing answers, this paper argues that several key issues have not yet been addressed in the literature. We need additional research before we can know with confidence the extent to which renters bear the property tax.