Financing transportation with land value taxes: Effects on development intensity

No 67, Working Papers from University of Minnesota: Nexus Research Group

Abstract: A significant portion of local transportation funding comes from the property tax. The tax is conventionally assessed on both land and buildings, but transportation increases only the value of the land. A more direct, efficient way to fund transportation projects is to tax land at a higher rate than buildings. The lower tax on buildings would allow owners to retain more of the profits of their investment in construction, and have the expected side effect of increased development intensity. A partial equilibrium simulation is created for three sample cities to determine the magnitude of the intensity increase for both residential and nonresidential development if various levels of split rate property taxes were enacted.

Keywords: tax; land value; locational analysis; transportation finance (search for similar items in EconPapers)
JEL-codes: H23 H27 H71 R14 R21 R33 R48 R51 R52 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-ppm and nep-ure
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Published in Journal of Transport and Land Use 5(1) pp.49-63

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http://hdl.handle.net/11299/180030 Second version, 2012 (application/pdf)

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Journal Article: Financing transportation with land value taxes: Effects on development intensity (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:nex:wpaper:landvaluetax

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