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Neutral Property Taxation

Author

Listed:
  • Richard Arnott

    (Boston College)

Abstract

This paper investigates property tax systems (linear taxes on pre-development land value, post-development structure value, and post-development site value) from a partial equilibrium perspective. Particular attention is paid to characterizing property tax systems that are neutral with respect to the timing and density of development and to calculating the deadweight loss from non-neutral property tax systems.

Suggested Citation

  • Richard Arnott, 1998. "Neutral Property Taxation," Boston College Working Papers in Economics 411., Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:411
    Note: An earlier version of this paper was circulated as BC WP 352.
    as

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    File URL: http://fmwww.bc.edu/EC-P/wp411.pdf
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    References listed on IDEAS

    as
    1. Paul A. Samuelson, 1964. "Tax Deductibility of Economic Depreciation to Insure Invariant Valuations," Journal of Political Economy, University of Chicago Press, vol. 72, pages 604-604.
    2. Richard Arnott & Petia Petrova, 2006. "The Property Tax as a Tax on Value: Deadweight Loss," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(2), pages 241-266, May.
    3. Sweeney, James L., 1974. "A commodity hierarchy model of the rental housing market," Journal of Urban Economics, Elsevier, vol. 1(3), pages 288-323, July.
    4. Mills, David E., 2001. "Land value taxation," Regional Science and Urban Economics, Elsevier, vol. 31(6), pages 765-770, November.
    5. Donald C Shoup, 1970. "The Optimal Timing Of Urban Land Development," Papers in Regional Science, Wiley Blackwell, vol. 25(1), pages 33-44, April.
    6. Arnott, Richard J & Lewis, Frank D, 1979. "The Transition of Land to Urban Use," Journal of Political Economy, University of Chicago Press, vol. 87(1), pages 161-169, February.
    7. Skouras, A, 1978. "The Non-Neutrality of Land Taxation," Public Finance = Finances publiques, , vol. 33(1-2), pages 113-134.
    8. Capozza, Dennis & Li, Yuming, 1994. "The Intensity and Timing of Investment: The Case of Land," American Economic Review, American Economic Association, vol. 84(4), pages 889-904, September.
    9. Chinloy, Peter, 1979. "The estimation of net depreciation rates on housing," Journal of Urban Economics, Elsevier, vol. 6(4), pages 432-443, October.
    10. Bentick, Brian L, 1979. "The Impact of Taxation and Valuation Practices on the Timing and Efficiency of Land Use," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 859-868, August.
    11. Kanemoto, Yoshitsugu, 1985. "Housing as an asset and the effects of property taxation on the residential development process," Journal of Urban Economics, Elsevier, vol. 17(2), pages 145-166, March.
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    More about this item

    Keywords

    property taxation; site value taxation; land taxation; neutrality;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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    This paper has been announced in the following NEP Reports:

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