This study identified the capitalization effects of public school choice programs, using data on an inter-district, open enrollment program in Minnesota. The study examined changes in property tax bases in Minnesota as a result of the shift from local monopolies of public schooling to open enrollment. It investigated the effect of transferring patterns in the first school year of statewide open enrollment (1990-91) on changes in property tax bases between 1989-90 and 1996-97. Data came from the Minnesota Department of Families, Children, and Learning's "School District Profiles," district level student transferring data, and the 1990 School District Databook based on the 1990 Census. Results indicated that property tax bases declined in desirable districts that accepted transfer students, while property tax bases increased in districts where students were able to transfer to preferred districts. The capitalization effects were of sufficient magnitude that a district losing students because of transferring did not actually lose much financially, or may have even had a moderate gain, as a result of school choice. The converse was true for districts gaining transfer students. (Contains 21 references.) (SM)