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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. 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.
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    6. Brueckner, Jan K., 1983. "Property value maximization and public sector efficiency," Journal of Urban Economics, Elsevier, vol. 14(1), pages 1-15, July.
    7. 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..
    8. Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May.
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    10. Sonstelie, Jon C. & Portney, Paul R., 1978. "Profit maximizing communities and the theory of local public expenditure," Journal of Urban Economics, Elsevier, vol. 5(2), pages 263-277, April.
    11. Clapp, John M., 1979. "The substitution of urban land for other inputs," Journal of Urban Economics, Elsevier, vol. 6(1), pages 122-134, January.
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