Skip to main content
SpringerLink
Log in

Two-Rate Property Tax Effects on Land Development

  • Published:
The Journal of Real Estate Finance and Economics Aims and scope Submit manuscript

Abstract

Economists have long understood that the conventional property tax causes the housing stock to be smaller than it would be in the presence of a nondistortionary tax such as a land or site value tax. This article brings together the results from models of housing development timing and structural density with the results of a modern model of a graded property tax in an urban setting. The combination of results is used to investigate the effects of a community’s movement from a property tax to a two-rate tax system where land is taxed at a higher rate than structures. The conditions under which increasing reliance on a land or site value tax will increase housing structural density and speed of development are identified and examined. Policy implications are drawn.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Anderson, John E. (1986).“Property Taxes and the Timing of Urban Land Development” Regional Science and Urban Economics 16 (November), 483–492.

    Google Scholar 

  • Anderson, John E. (1993).“Two-Rate Property Taxes and Urban Development” Intergovernmental Perspective 19 (Summer), 19–20, 28.

    Google Scholar 

  • Brueckner, Jan K. (1986).“A Modern Analysis of the Effects of Site Value Taxation” National Tax Journal 39 (March), 49–58.

    Google Scholar 

  • George, Henry. (1879). Progress and Poverty. New York: Henry George.

    Google Scholar 

  • Henderson, J. Vernon. (1994).“Community Choice of Revenue Instruments” Regional Science and Urban Economics 24 (April), 159–183.

  • Henderson, J. Vernon. (1995).“Will Homeowners Impose Property Taxes?'' Regional Science and Urban Economics 25 (April), 153–181.

  • Hoyt, William H. (1991).“Competitive Jurisdictions, Congestion, and the Henry George Theorem” Regional Science and Urban Economics 21 (November), 351–370.

    Google Scholar 

  • Oates, Wallace E., and Robert M. Schwab. (1992).“Urban Land Taxation for the Economic Rejuvenation of City Centers: The Pittsburgh Experience” Pennsylvania League of Cities Reporter 2nd qtr., 28–30.

  • Turnbull, Geoffrey K. (1988).“Property Taxes and the Transition of Land to Urban Use” Journal of Real Estate Finance and Economics 1 (October), 393–403.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, University of Nebraska, Lincoln, NE, 68588-0489

    John E. Anderson

Authors
  1. John E. Anderson
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Anderson, J.E. Two-Rate Property Tax Effects on Land Development. The Journal of Real Estate Finance and Economics 18, 181–190 (1999). https://doi.org/10.1023/A:1007766608770

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1007766608770

Search

Navigation