Restraining the Leviathan: Property Tax Limitation in Massachusetts.

This paper examines property tax limitations in the state of Massachusetts. The authors focus on proposition 2 ½ where voters approved to reduce property taxes and restricted further growth. Results imply it had a low impact on local revenues and spending. Proposition 2 ½ did reduce local revenues in the 1990's recession. Voters were discontent with the financing system and viewed the government as inefficient because their own tax burden was high. This working paper is available at the US Federal Reserve Board. You can access this site by going to www.federalreserve.gov/pubs/workingpapers.htm.