Abstract
This paper examines determinants of parcel tax adoption in California school districts as a means to supplement local public school funding. A parcel tax is a regressive tax imposed on a unit of property that requires a two-thirds supermajority vote to adopt. Despite its increasing role as a local funding source, the school parcel tax has not been well understood, particularly how this regressive form of property tax is adopted in different local conditions. Unlike previous research that emphasizes income differences across school districts, I predict that the distribution of home prices within a district is an important determinant in parcel tax adoption. Using Heckman selection models and California school district level data, I find that a larger distribution of home values reduces the likelihood of parcel tax adoption.