The fiscal impacts of use-value taxation in Prince William County, Virginia
<p>Concern that high property taxation of agricultural land encourages its conversion to nonagricultural uses has led to the adoption of use-value taxation practices. Use-value taxation has had mixed results as a deterrent to the conversion of agricultural and open space land. It has been argu...
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| Format: | Others |
| Language: | en |
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Virginia Tech
2014
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| Online Access: | http://hdl.handle.net/10919/42232 http://scholar.lib.vt.edu/theses/available/etd-04252009-040811/ |
| Summary: | <p>Concern that high property taxation of agricultural land encourages its
conversion to nonagricultural uses has led to the adoption of use-value taxation
practices. Use-value taxation has had mixed results as a deterrent to the conversion of
agricultural and open space land. It has been argued that use-value taxation does not
succeed in retaining open space along the rura1-urban fringe (Stocker 1975; Ferguson),
and further that such programs may actually lower the community's property tax base
significantly (Tiebout; Anderson 1993). Additionally, when land is taxed by its usevalue
rather than market-value, the local tax base declines curtailing local public
services and consequently reducing the attractiveness of the community for residential,
commercial and industrial land uses (Abeyratne and Johnson, Bickerdike, Netzer,
Oates).</p>
<p>
This study seeks to determine the fiscal impacts of use-value taxation and
incurred and immediate revenues generated by a particular land use project. By
comparing the net impact on the property tax rate of different land uses, the
effectiveness of land use taxation policies for communities can be determined.
The fiscal impact of alternative land uses are measured using The Virginia
Impact Projection (VIP) model. The empirical models employed are based on a static
cross-sectional econometric analysis of Virginia counties initially developed by
Johnson and Keeling and updated for the current analysis using more recent data. The
empirical equations are used to construct a fiscal impact assessment (simulation)
model. The simulation model allows the comparison of impact and baseline scenarios
developed using alternative land uses.</p>
<p>
It was found that the impact offarmland enrollment in use-value assessment
programs is not as large when net impacts are considered rather than sole
consideration of the direct property tax revenue changes.</p> === Master of Science |
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