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Journal of Transport and Land Use

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Published

2012-04-16

Issue

Vol. 5 No. 1 (2012)

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Articles

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Authors who publish with JTLU agree to the following terms: 1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under Creative Commons Attribution-Noncommercial License 4.0 that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal. 2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal. 3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.

How to Cite

Junge, J. R., & Levinson, D. (2012). Financing transportation with land value taxes: Effects on development intensity. Journal of Transport and Land Use, 5(1), 49–63. https://doi.org/10.5198/jtlu.v5i1.148

Financing transportation with land value taxes: Effects on development intensity

Jason R. Junge

David Levinson

DOI: https://doi.org/10.5198/jtlu.v5i1.148

Keywords: Property tax, development intensity

Abstract

A significant portion of local transportation funding comes from the property tax. The tax is conventionally assessed on both land and buildings, but transportation increases only the value of the land. A more direct, efficient way to fund transportation projects is to tax land at a higher rate than buildings. The lower tax on buildings would allow owners to retain more of the profits of their investment in construction, and have the expected side effect of increased development intensity. A partial equilibrium simulation is created for Minneapolis, Richfield and Bloomington, Minnesota to determine the intensity effects of various levels of split-rate property taxes for both residential and nonresidential development. The results indicate that split-rate taxes would lead to higher density for both types of development in all three cities.

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The Journal of Transport and Land Use is published and sponsored by the University of Minnesota Center for Transportation Studies and is the official journal of the World Society for Transport and Land Use (WSTLUR).

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