Value Capture Taxation as an Infrastructure Funding Technique

Abstract

A legitimate argument is that the public sector must restore its contribution to the financing of the new infrastructure. However, for both political and economic reasons, an increase in broad-based taxes or debt seems to be off the table; new funding vehicles are clearly necessary. This essay identifies value capture taxation as a partial solution to this infrastructure funding problem. Value capture is a set of techniques that take advantage of the increase in property values to finance service and infrastructure improvements.