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Do high property taxes influence family forest land Tenure decisions?

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  • Kilgore, Michael A.

Abstract

Studies have repeatedly documented high property taxes as being a major determinant of a landowner's decision to divest of its forest land. To empirically investigate the relationship between property tax burden and forest land sale activity, property tax data and over 5300 Minnesota forest land sale records from 2000 to 2008 were assembled. Analyses were carried out to identify statistically significant relationships between several measures of private forest land sale activity and forest land property tax burden. The analyses failed to find a statistically positive relationship between the two. Statistically significant negative associations were found between some measures of forest property tax burden and forest land sale frequency, indicating forest land sales activity actually decreased with increasing property tax burden. While high property taxes, no doubt, influence forest land sale decisions, the findings from this study suggest its influence may not be as pervasive as once thought.

Suggested Citation

  • Kilgore, Michael A., 2014. "Do high property taxes influence family forest land Tenure decisions?," Journal of Forest Economics, Elsevier, vol. 20(2), pages 161-173.
    • Handle: RePEc:eee:foreco:v:20:y:2014:i:2:p:161-173
    DOI: 10.1016/j.jfe.2014.03.002
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    References listed on IDEAS

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    1. Max, Wendy & Lehman, Dale E., 1988. "A behavioral model of timber supply," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 71-86, March.
    2. Koskela, Erkki & Ollikainen, Markku, 2001. "Forest Taxation and Rotation Age under Private Amenity Valuation: New Results," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 374-384, November.
    3. Sun Joseph Chang, 1982. "An Economic Analysis of Forest Taxation's Impact on Optimal Rotation Age," Land Economics, University of Wisconsin Press, vol. 58(3), pages 310-323.
    4. W. David Klemperer, 1982. "An Analysis of Selected Property Tax Exemptions for Timber," Land Economics, University of Wisconsin Press, vol. 58(3), pages 293-309.
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    Cited by:

    1. Meier, Justin T. & Kilgore, Michael A. & Frey, Gregory E. & Snyder, Stephanie A. & Blinn, Charles R., 2019. "A comparison of participants and non-participants of state forest property tax programs in the United States," Forest Policy and Economics, Elsevier, vol. 102(C), pages 10-16.
    2. Daigneault, Adam J. & Sohngen, Brent L. & Sedjo, Roger, 2020. "Carbon and market effects of U.S. forest taxation policy," Ecological Economics, Elsevier, vol. 178(C).
    3. Kilgore, Michael A. & Ellefson, Paul V. & Funk, Travis J. & Frey, Gregory E., 2018. "Private forest owners and property tax incentive programs in the United States: A national review and analysis of ecosystem services promoted, landowner participation, forestland area enrolled, and ma," Forest Policy and Economics, Elsevier, vol. 97(C), pages 33-40.
    4. Chang, Sun Joseph, 2018. "Forest property taxation under the generalized Faustmann formula," Forest Policy and Economics, Elsevier, vol. 88(C), pages 38-45.
    5. Frey, Gregory E. & Meier, Justin T. & Kilgore, Michael A. & Snyder, Stephanie A. & Blinn, Charles R., 2019. "Factors associated with family forest landowner enrollment in state preferential forest property tax programs in the United States," Land Use Policy, Elsevier, vol. 89(C).

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    More about this item

    Keywords

    Property taxes; Forest land sale; Turnover; Tenure;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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