Daniel P. Murphy

Category: Land Taxes

  • Implicit Land Taxes and Their Effect on the Real Economy

    with Nathan Seegert, Journal of Public Economics, Read

    Abstract

    Land taxes are widely viewed as an efficient source of public revenue, yet explicit land taxation is rarely implemented. We study a closely related but largely overlooked object: implicit land taxes that arise within standard property tax systems when tax assessments place different relative weights on land and structures than market valuations do. Using parcel-level data on assessed values and transaction prices from U.S. counties, we estimate these implicit land taxes by comparing assessor and market hedonic valuations. We find substantial dispersion in implicit land taxes across and within metropolitan areas. Counties with higher implicit land taxes experience faster growth in population density, business establishments, earnings, and demographic diversity. These patterns are consistent with theoretical predictions that taxing land more heavily than structures encourages denser and more productive development.

  • 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.