Raising infrastructure charges on land development: Incidence and adjustments

Hodge, Ian; Cameron, Gordon C.

doi:10.1080/02640828908723985

Cited by 6 publications

(2 citation statements)

References 4 publications

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“…Delaney & Smith (1989) and Hodge & Cameron (1989) show that the incidence of DCCs depends on the supply elasticity of raw land, which is affected by the structure of the development industry in the region, by the extent of land banking by developers, and by their ability to act as an oligopoly and agree to hold land off the market to raise its price. Pricing policies have to account for these differences and consider the behaviour of landowners.…”

Section: The Conceptual Problemsmentioning

confidence: 99%

Pricing city form: development cost charges and simulated markets

Skaburskis¹

2003

Planning Practice and Research

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Section: The Conceptual Problemsmentioning

confidence: 99%

Pricing city form: development cost charges and simulated markets

Skaburskis¹

2003

Planning Practice and Research

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“…Apart from taxes, governments may levy charges to fund infrastructure for a particular development or community as well. Such charges are known as “infrastructure contributions” in Australia (UDIA, 2008), “infrastructure charges” in the UK (Hodge and Cameron, 1989), and “development impact fees” in the USA (Skaburskis, 1990).…”

Section: Introductionmentioning

confidence: 99%

A comparison of property taxes and fees in Sydney and Taipei

Chan

Chen²

2011

Property Management

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PurposeThis paper attempts to empirically examine the property taxes and fees for residential development to determine whether they have a significant impact on house prices in Sydney and Taipei.Design/methodology/approachProperty charges and taxes in Sydney and Taipei are examined and compared. A conclusion is then drawn from the results of the analysis.FindingsIt is found that property taxes and fees account for a substantial portion of property prices in Sydney but not Taipei. There is room for the government to reduce the amount of property taxes and fees to enhance housing affordability in Sydney.Research limitations/implicationsThis study has limitations in that only two cities are involved. As such, the findings are not exhaustive or conclusive. When conditions allow, a comprehensive study of all major cities in the two countries should be conducted. Nevertheless, this study does provide some background information about cost components of house prices and the impact of property taxes and fees in both cities. It may serve as a stepping stone for future research.Practical implicationsHigh property taxes and fees are suspected to be a culprit for causing high house prices. The findings of the paper show that it is true in Sydney, but not Taipei. It implies that by cutting property taxes and fees alone may not solve the high house price problem.Originality/valueThis paper demonstrates that high property taxes and fees have a significant impact on house prices in Sydney. However, their impact on house prices in Taipei is minimal. The difference shows that high property taxes and fees may not be the cause of high house prices in all countries.

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An Empirical Estimation of the Price Effects of Development Impact Fees

Skaburskis

Qadeer

1992

Urban Studies

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Empirical analysis of the price of vacant lots sold in three Toronto suburban municipalities during the 1977-86 period shows that development impact fees directly increased lot prices by approximately 1 .2 times the size of the fee . The extent of the increase was related to city growth rates. In general, the faster the rate of growth the lower was the price effect of development impact fees . The effects of growth, however, were not consistent across the three municipalities as one municipality appeared to be lowering its fees in response to reductions in growth rates . The policy environment within which fees are implemented and the way fees are adjusted appear to influence their effect on lot prices . The estimated model also suggests that increases in expected future construction costs reduce current lot prices . General increases in the consumers' shelter costs tend to inflate the price of vacant lots. The expectation of future increases in the cost of land development, whether it is due to increases in material prices, wages, development approval processes, growth controls or impact fees, tends to reduce current lot prices . The indirect price effects of introducing and expanding development impact fees tend to counter their direct effects by reducing the size of urban growth premiums . The General ModelThis study examines the effect of development impact fees on the price of vacant building lots in three suburban municipalities of Toronto (Figure 1) . The article compares the price of new vacant lots across Mississauga, Brampton and Dickering and identifies the differences that can be attributed to differences in development impact fees . The regression analysis shows how changes in development impact fees affect lot prices over time . The analysis uses a systematic sample describing 10 per cent of the vacant single-family residential lots sold in the three municipalities between 1977 and 1986 . The empirical approach is based, in part, on suggestions by Hodge and Cameron (1989). generally start by considering a growing city in which housing prices rise continuously as a result of exogenous forces . Land prices are set by the landowners' timing decisions which, in turn, are influenced by city growth rates, construction costs and interest rates . Models describing the optimal development time have been developed by Shoup (

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Raising infrastructure charges on land development: Incidence and adjustments

Cited by 6 publications

References 4 publications

Pricing city form: development cost charges and simulated markets

Pricing city form: development cost charges and simulated markets

A comparison of property taxes and fees in Sydney and Taipei

An Empirical Estimation of the Price Effects of Development Impact Fees

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