Optimal Commodity Taxation when Land and Structures must be Taxed at the Same Rate

Saku Aura () and Thomas Davidoff ()

No CESifo Working Paper No. 1522, CESifo Working Paper Series from CESifo Group Munich

Abstract: We show that the optimal property tax rate rises with the ratio of land rents to structure and land development costs. California’s high ratio of income to property tax revenue and the distribution of Federal housing subsidies thus appear geographically misplaced. Proportional taxation of non-housing commodities is not optimal, even when elasticities with respect to wages are identical. Absent externalities, the desirability of transportation taxes and “anti-sprawl” growth controls hinge on the relative importance of time versus money in commuting costs.

JEL-codes: H21 R13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe, nep-pub and nep-ure
Date: 2005
View list of references

Downloads: (external link)
http://www.cesifo-group.de/DocCIDL/cesifo1_wp1522.pdf (application/pdf)

Related works:
Working Paper: Optimal Commodity Taxation When Land and Structures Must Be Taxed at the Same Rate (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ces:ceswps:_1522

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Group Munich
Address: Poschingerstrasse 5, 81679 Munich
Series data maintained by Julio Saavedra ().