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Maximization of nonresidential property tax revenue by a local government

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  • John McDonald

Abstract

The article presents a model of the market for commercial or industrial real estate at the local level that is used to derive an equation for the property tax rate that maximizes tax revenue - given that demand for real estate at the local level is highly elastic and capital is mobile in the long-run.

Suggested Citation

  • John McDonald, 2008. "Maximization of nonresidential property tax revenue by a local government," Applied Economics Letters, Taylor & Francis Journals, vol. 15(12), pages 925-928.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:12:p:925-928
    DOI: 10.1080/13504850600972329
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    References listed on IDEAS

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    1. Clapp, John M., 1980. "Production with land and nonland factors: Which functional form?," Journal of Urban Economics, Elsevier, vol. 8(1), pages 32-46, July.
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    3. George R. Zodrow & Peter Mieszkowski, 2019. "Pigou, Tiebout, Property Taxation, and the Underprovision of Local Public Goods," World Scientific Book Chapters, in: George R Zodrow (ed.), TAXATION IN THEORY AND PRACTICE Selected Essays of George R. Zodrow, chapter 17, pages 525-542, World Scientific Publishing Co. Pte. Ltd..
    4. Wooders, Myrna, 1978. "Equilibria, the core, and jurisdiction structures in economies with a local public good," Journal of Economic Theory, Elsevier, vol. 18(2), pages 328-348, August.
    5. Richard F. Dye & Therese J. McGuire & David F. Merriman, 2001. "The Impact of Property Taxes and Property Tax Classification on Business Activity in the Chicago Metropolitan Area," Journal of Regional Science, Wiley Blackwell, vol. 41(4), pages 757-777, November.
    6. Wilson, John Douglas, 2005. "Welfare-improving competition for mobile capital," Journal of Urban Economics, Elsevier, vol. 57(1), pages 1-18, January.
    7. Wilson, John D., 1985. "Optimal property taxation in the presence of interregional capital mobility," Journal of Urban Economics, Elsevier, vol. 18(1), pages 73-89, July.
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