Daniel P. Murphy

Category: Land Taxes

  • Land Taxes: From Theory to Practice

    with Nick B. Allen, John Anderson and Zhou Yang
    National Tax Journal: 77(4), Read

    Abstract

    The interest in land taxes has increased as concerns around revitalization, increased density, and housing affordability have become widespread. This paper provides multiple perspectives that bridge the gap between theory and practice. We offer new insights into questions of where land taxes are likely to be most effective. We also discuss advantages and disadvantages of alternative features including assessment problems, tax incidence, and implementation challenges. Together this paper provides a guide for policy makers and researchers for the future of land taxes.

  • Implicit Land Taxes and Their Effect on the Real Economy

    with Nathan Seegert, Revise and Resubmit, Journal of Public Economics, Read

    Abstract

    We show empirically that land taxes are associated with higher density, neighborhood diversity, business formation, and other indicators of economic performance. To investigate land taxes empirically, we estimate implicit land taxes (or subsidies) for over 2,000 counties in the U.S. These implicit land taxes arise due to idiosyncratic discrepancies in the evaluation of land and structures between tax assessors and buyers and sellers in the market.  We find substantial dispersion in implicit land taxes across U.S. counties and within metropolitan areas. They are also highly persistent within counties. Finally, we develop a model of land taxes and endogenous population to rationalize our results.