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Differential effects of land value taxation

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  • Yang, Zhou

Abstract

This paper makes the first attempt to empirically examine the effect of site value taxation on the value of land and explore the differential effects across various types of land use. Using municipality-level panel data, the study shows that raising the tax rate on land while lowering the tax rate on buildings leads to an increase in land value per acre. Further, this impact differs between residential land and commercial and industrial land. Residential land appears to be more responsive to changes in the tax differential than commercial and industrial land. The paper contributes to the literature on land value taxation by testing important theories that have never been tested before and offering the first empirical evidence on the impact of site value taxation on land value.

Suggested Citation

  • Yang, Zhou, 2018. "Differential effects of land value taxation," Journal of Housing Economics, Elsevier, vol. 39(C), pages 33-39.
    • Handle: RePEc:eee:jhouse:v:39:y:2018:i:c:p:33-39
    DOI: 10.1016/j.jhe.2017.11.002
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    Cited by:

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    2. Murray, Cameron & Hermans, Jesse Benjamin, 2019. "Land value is a progressive and efficient property tax base: Evidence from Victoria," OSF Preprints mxg3j, Center for Open Science.
    3. Shulu Che & Ronald Ravinesh Kumar & Peter J. Stauvermann, 2021. "Taxation of Land and Economic Growth," Economies, MDPI, vol. 9(2), pages 1-20, April.

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    More about this item

    Keywords

    Land value taxation; Two-Rate property taxation; Property assessments; Land use;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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