Impact of a Two-Rate Property Tax on Residential Densities

Seong-Hoon Cho (), SeungGyu Kim, Dayton Lambert and Roland Roberts

American Journal of Agricultural Economics, 2013, vol. 95, issue 3, 685-704

Abstract: Municipalities sometimes reform property tax schedules in an effort to increase suboptimal residential densities. One such approach is to reduce the tax rate applied to building values and increase the tax rate applied to land, known as a two-rate property tax (TPT). This paper evaluates the impact of a TPT on residential density in Nashville-Davidson County, Tennessee where a conventional property tax schedule prevails during 2006--2007. When land taxes are proportionally higher than taxes on structures, 1.07 to 1 and 1.25 to 1 for general and urban service districts, respectively, ex ante simulations suggest that housing density increases by 18% in general services districts and 83% in urban services districts. Copyright 2013, Oxford University Press.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1093/ajae/aas141 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:oup:ajagec:v:95:y:2013:i:3:p:685-704

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().