I've been thinking about investing in local real estate lately, and there's an unusual (to me) practice here of funding some of the city provided infrastructure (water, roads and lighting I guess) by a special property tax for 20 years. I'm curious what, if anything, happens to property value as that date approaches.
Naively, I'd expect a bump in prices the day the tax expires, as buyers try to avoid the extra payments. I have a feeling though that the intuitive, theoretical and experimental answers will all be different. So is there a good way to think about predicting the effects of tax expiration and confirm expected results in real life?