The Property Tax as a Tax on Value: Deadweight Loss

Richard Arnott and Petia Petrova
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Petia Petrova: Boston College, Postal: Dept. of Economics, Boston College, Chestnut Hill, MA 02467 USA

No 532, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: Consider an atomistic developer who decides when and at what density to develop his land, under a property value tax system characterized by three time-invariant tax rates: the tax rate on pre-development land value; the tax rate on post- development residual site value; and the tax rate on structure value. Arnott (2002) identified the subset of property value tax systems which are neutral. This paper investigates the relative efficiency of four idealized, non-neutral property value tax systems (i) Canadian property tax system; (ii) simple property tax system; (iii)residual site value tax system;( iv) differentiated property tax system under the assumption of a constant rental growth rate.

Keywords: property taxation; site value taxation; land taxation; deadweight loss (search for similar items in EconPapers)
JEL-codes: H2 (search for similar items in EconPapers)
Date: 2002-01-02
New Economics Papers: this item is included in nep-pbe and nep-pub
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The Property Tax as a Tax on Value: Deadweight Loss (2006)
Working Paper: The Property Tax as a Tax on Value: Deadweight Loss (2002)
Working Paper: The Property Tax as a Tax on Value: Deadweight Loss (2002)
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