UROP Project

Field experiment, property taxes, economic policy

Research Mentor: Dr. or Prof. Luke Rodgers,
Department, College, Affiliation: Economics, Social Sciences and Public Policy
Contact Email: lprodgers@fsu.edu
Research Assistant Supervisor (if different from mentor):
Research Assistant Supervisor Email:
Faculty Collaborators:
Faculty Collaborators Email:

Looking for Research Assistants: Yes
Number of Research Assistants: 3
Relevant Majors: My preference would be for economics majors, though political science and public policy students would also be a good fit.
Project Location: On FSU Main Campus
Research Assistant Transportation Required:
Remote or In-person: Partially Remote
Approximate Weekly Hours: Most of the time there will be very few hours (if any), but once we start preparing the mailing materials it will be around 10. The work time will be spread out over weeks, so it is relatively flexible. ,
Roundtable Times and Zoom Link: Wednesday, September 4th at 2:30-3:00pm: https://fsu.zoom.us/j/94422727050

Project Description

Property taxes are the largest locally-controlled source of revenue and one of the largest costs associated with homeownership. Homestead exemptions are one way in which states are able to reduce the property tax burden faced by homeowners. Homestead exemptions can also provide targeted relief to lower-income residents because lower value homes receive larger tax savings in percentage terms than higher value homes. For example, homeowners in Florida can receive a homestead exemption of up to $50,000 of their home’s value. This is a larger share of value for a home worth $150,000 compared to a home worth $300,000.

Despite the tax savings associated with these exemptions, the take-up rate in states without automatic enrollment is not 100 percent. In Florida, a homeowner must apply but the process is essentially filling out a form and proving residence. Evidence from Florida suggests that take-up rates are lower in communities with a larger share of minority homeowners, but the reason for this is unclear (Ihlanfeldt and Rodgers, 2022). Furthermore, homeowners who receive the homestead exemption in Florida automatically benefit from the Save Our Homes program, which effectively limits how quickly one’s property tax bill can increase from a previous year. It is an important question why homeowners may be foregoing thousands of dollars in tax savings per year.

To explore disparities in the homestead exemption take-up rate, we propose a field experiment that involves sending letters to owner-occupied properties that do not currently receive the homestead exemption despite being eligible for the benefit. The letters will inform residents of their eligibility and potential savings. The two treatment arms will be 1) a letter reminding the homeowner of the benefits of the homestead exemption and how to apply and 2) a letter with all of that information plus an option to receive a text reminder before the submission deadline. We will measure take-up rates of the exemption in these groups compared to a control group of eligible homeowners who do not have the exemption and who do not receive any letter. Our timeline requires that these letters be prepared over the course of the Fall semester, with the mailers going out all at once in January 2025.

Research Tasks: The research tasks for this project include carefully preparing around 11,000 letters over the course of a few months. Much of this will be automated through Word macros, which will be supervised by the research mentor. Packing the envelopes with the letters will be the most time-intensive part of this project, but it can be spread out over the course of weeks, if not months. The main requirements are that the we carefully document which homeowner receives which kind of letter and that we carefully match the letters to the addressed envelopes.

Skills that research assistant(s) may need: Required: attention to detail, strong communication skills, responsiveness to emails, time management skills, spreadsheet organization, letter folding
Recommended: an interest in public policy, economics, field experiments. This will make it more enjoyable!