Tax Rules, Land Development, and Open Space
Concern about “open space” is growing. Conservation advocates worry that private land use decisionmakers preserve too little open space. Yet private land developers are deciding on their own to preserve open space in new developments because it provides amenities to purchasers of lots. Moreover, tax provisions provide incentives for preserving more open space than would be privately optimal. Many jurisdictions have adopted “use-value assessment” standards granting favorable tax treatment to lands maintained in open space. Also, donations of open space can be deducted from income in computing tax liabilities. Both factors may be empirically important, although tax deductibility may have larger conservation effects than does use-value assessment. These conclusions raise several unanswered questions: How important are tax incentives in practice? Do they motivate enough conservation of open space? Do tax incentives target the right conservation priorities?
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 Cornes & Charles F. Mason & Todd Sandler, 1986. "The Commons and the Optimal Number of Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 101(3), pages 641-646.
- Anderson, John E. & Griffing, Marlon F., 2000. "Use-Value Assessment Tax Expenditures in Urban Areas," Journal of Urban Economics, Elsevier, vol. 48(3), pages 443-452, November.
- John E. Anderson, 1993. "Use-Value Property Tax Assessment: Effects on Land Development," Land Economics, University of Wisconsin Press, vol. 69(3), pages 263-269.
- T. Nicolaus Tideman, 1990. "Integrating Land-Value Taxation with the Internalization of Spatial Externalities," Land Economics, University of Wisconsin Press, vol. 66(3), pages 341-355.
When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-02-61. 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: (Webmaster)
If references are entirely missing, you can add them using this form.