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LUMP SUM TAX LOSS REIMBURSEMENT UNDER THE THAMES RIVER FLOOD CONTROL COMPACT 1
Author(s) -
Storey David A.,
Lass Daniel A.,
Diamond Joseph,
Lindsay Bruce E.
Publication year - 1982
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1982.tb00007.x
Subject(s) - lump sum , flood myth , flood control , payment , recreation , distribution (mathematics) , reimbursement , 100 year flood , economics , environmental science , agricultural economics , geography , mathematics , finance , economic growth , law , political science , mathematical analysis , health care , archaeology
Under the terms of the Thames River Valley Flood Control Compact, Connecticut has been paying Massachusetts 40 percent of the annual property tax losses suffered by seven Massachusetts towns where four flood control structures were located. The permissable alternative of a single lump sum payment was investigated in the study summarized here. The lump sum payment should be the proportion of total benefits (flood control and recreation) from the four structures which Connecticut receives, multiplied by the present value of projected tax losses in the seven tom Flood control benefits and their distribution between the two states were fixed in the Compact, but a survey was necessary to determine recreational benefits and their distribution. Regression analysis of 1957 to 1978 tax loss data provided equations used to project future tax losses. Resent values of projected tax low were calculated using discount rates ranging from 6 to 12 percent. A plausible range of lump sum reinbursements as of 1979 was identified.