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Absentee Ownership of Farmland and State and Local Tax Policy: Income Tax Promotes Absenteeism, But the Property Tax Can Be Used to Strengthen Family Farms
Author(s) -
Fisher Peter S.
Publication year - 1988
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1988.tb02003.x
Subject(s) - property tax , incentive , business , ad valorem tax , state income tax , public economics , indirect tax , income tax , value added tax , absenteeism , direct tax , economics , economic policy , state (computer science) , tax reform , labour economics , market economy , management , algorithm , computer science
A bstract . The incentive effects of state and local tax policies in promoting or inhibiting the ownership of farmland by non‐operators are evaluated. Previous research on the economic, social and environmental effects of absentee ownership is reviewed as well as evidence regarding the impact of tax laws on absentee owners versus owner‐operators. The Federal tax laws, it is found, work to increase land prices , reduce entry into farming by young farmers, and increase absentee ownership. State income tax policies may reinforce these effects. Property tax policies, on the other hand, may counteract income tax laws by giving tax relief preferentially to owner‐operators. Several modifications of property tax relief programs are suggested.