The traditional view of property taxes was originally expressed by Dick Netzer in 1966 in his book Economics of the Property Tax .Netzer argued that a property tax is shifted forward to the consumer through an increase in house prices, the approach he used was the partial equilibrium approach where property taxes are considered as separate payments for capital and land. The supply of capital is considered to be perfectly elastic, and the supply of land is considered to be perfectly inelastic the return to owners of capital is at a nationally determined rental rate for capital. When a government put into law property tax on capital, the price of capital will rise in order to retain an after tax return on capital and the amount of capital in
