IN HIS ESTIMATES OF the financial resources of state and local governments for the decade of the 1960's, Netzer assumes that the income elasticity of the property tax is unity.' Criticism has been directed against this assumption since it is considerably higher than the widely accepted value of elasticity of 0.22, derived by Groves and Kahn.2 The wide difference in 'the magnitude of the estimates, however, arises largely from the use of market value of taxable property to measure elasticity by Netzer as against assessed value by Groves and Kahn. Unfortunately, there are no adequate historical time series of the market value of taxable property available to verify the validity of Netzer's assumptions. Netzer bases his estimates on figures derived by bringing forward Goldsmith's estimates for residential non-farm real estate and on Department of Agriculture data for farm property. In addition, Mushkin3 has examined the income elasticity of the property tax base (full market value) in five states that have initiated market sales-ratio or appraisal studies for equalization purposes. The state data, however, are not completely satisfactory because they are of uneven quality over time-the more recent data being more accurate. Therefore, estimates reflect in part changes in the accuracy of measurement, in addition to elasticity. The author of this note has estimated, for the year 1956, in connection with another study,4 the full value of locally assessed