The effective use of property tax incentives for economic development

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Daphne A. Kenyon; Adam H. Langley; Bethany P. Paquin;
(2013)
  • Subject: Property tax ; Tax incentives ; Property tax - New England ; Tax incentives - New England
    acm: TheoryofComputation_GENERAL | ComputingMilieux_MISCELLANEOUS

To make property-tax incentives for business more effective, do not approve every incentive request, target use of incentives, avoid incentive wars, cooperate with surrounding localities, and conduct regular evaluations.
  • References (15)
    15 references, page 1 of 2

    1 Thanks to Stan McMillen and Joan Youngman for their helpful comments.

    2 Louise Story, “As Companies Seek Tax Deals, Governments Pay High Price,” New York Times, December 1, 2012. One analyst argues the numbers are inflated by wrongly counting some general features of tax policy as incentives, such as sales tax exemptions for business inputs: David Brunori, “The New York Times Gets It Wrong,” State Tax Today, December 17, 2012.

    3 Daphne A. Kenyon, Adam H. Langley, and Bethany P. Paquin, “Rethinking Property Tax Incentives for Business” (Policy Focus Report, Lincoln Institute of Land Policy, Cambridge, Massachusetts, 2012), http://www.lincolninst.edu/ pubs/2024_Rethinking-Property-Tax-Incentives-for-Business.

    4 “An Assessment of Connecticut's Tax Credit and Abatement Programs” (report, Connecticut Department of Economic and Community Development, December 2010), http://www.ct.gov/ecd/lib/ecd/decd_sb_501_sec_27_ report_12-30-2010_final.pdf.

    5 See Digest of Education Statistics (Washington, DC: National Center for Education Statistics, 2011), http://nces.ed.gov/pubsearch/pubsinfo. asp?pubid=2012001.

    6 Details on these programs come from various state sources and “Significant Features of the Property Tax,” http://www.lincolninst.edu/subcenters/significantfeatures-property-tax/.

    7 Peter Fisher, “The Fiscal Consequences of Competition for Capital,” in Reining in the Competition for Capital, ed. Ann Marusen (Kalamazoo, Michigan: W.E. Upjohn Institute for Employment Research, 2007), 65.

    8 Paul Crocetti, “Marlborough Finance Board Wrestles Over Sepracor Tax Break,” MetroWest Daily News, October 21, 2008.

    9 Hiawatha Bray, “R.I. Races to Save Curt Schilling's Company,” Boston Globe, May 16, 2012, http://www.bostonglobe.com/business/2012/05/15/races-savecurt-schilling-company/66q7c5GCrPGQYz8eeWT8jL/story.html.

    10 “Evidence Counts: Evaluating State Tax Incentives for Jobs and Growth” (report, Pew Center on the States, Washington, DC, 2012), 35.

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