Premium
Real Property Taxes and Farm Real Estate Values: Incidence and Implications
Author(s) -
Pasour E. C.
Publication year - 1973
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238339
Subject(s) - real estate , acre , capitalization rate , land values , business , cost approach , recreation , agricultural economics , property tax , estate , economics , finance , real estate development , agricultural science , real estate investment trust , land use , environmental science , civil engineering , political science , law , revenue , engineering
The relationship between reductions in real property taxes and farm real estate values is investigated. Average per acre value of farm real estate in North Carolina is regressed on the tax rate and other variables relating to farm size, land productivity, urban influence, and recreational demand. The results indicate that property tax reductions for farm real estate are largely capitalized into higher real estate values. The effect of a given decrease in tax rate for owners of farm real estate is contrasted with a similar decrease for owners of residential real estate.