Political Economy of Property Tax Reform: Hawaii's Experiment with Split‐Rate Property Taxation
Economic theory suggests that switching from a general property tax to a split-rate tax increases land use efficiency and stimulates urban core development while preserving the environment and reducing urban sprawl. Under split‐rate property taxation, land is typically taxed at a significantly higher rate than improvements. Beginning in 1965 Hawaii experimented with a statewide split‐rate property tax system to encourage economic growth and effect land reform. The experiment was ended in 1977. Following the transfer of property taxing powers to the counties in 1978, some counties brought back the split‐rate property tax at times. Since 2006, Kauai County has adopted the unusual practice of taxing improvements at a higher rate than land for most property classes. This article chronicles and explains the rationale behind Hawaii's state and county experiments with split‐rate property taxation.
Volume (Year): 70 (2011)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0002-9246|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard L. Pollock & Donald C. Shoup, 1977. "The Effect of Shifting the Property Tax Base from Improvement Value to Land Value: An Empirical Estimate," Land Economics, University of Wisconsin Press, vol. 53(1), pages 67-77.
- James Mak, 2006. "Taxation of Travel and Tourism," Chapters, in: International Handbook on the Economics of Tourism, chapter 11 Edward Elgar Publishing.
- Oates, Wallace E. & Schwab, Robert M., 1997. "The Impact of Urban Land Taxation: The Pittsburgh Experience," National Tax Journal, National Tax Association, vol. 50(1), pages 1-21, March.
- repec:ntj:journl:v:50:y:1997:i:no._1:p:1-21 is not listed on IDEAS
- Bowman, John H. & Bell, Michael E., 2008. "Distributional Consequences of Converting the Property Tax to a Land Value Tax: Replication and Extension of England and Zhao," National Tax Journal, National Tax Association, vol. 61(4), pages 593-607, December.
- Jeffrey P. Cohen & Cletus C. Coughlin, 2005. "An introduction to two-rate taxation of land and buildings," Review, Federal Reserve Bank of St. Louis, issue May, pages 359-374.
When requesting a correction, please mention this item's handle: RePEc:bla:ajecsc:v:70:y:2011:i:1:p:4-29. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.