Abstract
The ability of local assessors to accurately estimate land values separately from structure values is important when considering a split tax. When the value of land is estimated with less variation, there is greater equity. We examine land ratios in New London, New Haven, and Hartford Connecticut and sub-groupings within these cities for 2006 to 2010. Overall, the land ratios coefficients of dispersion (COD), a measure of horizontal equity, are too large for an equitable split tax. We also look at land assessment equity among sub-groupings of properties near parks, highway exits, airports, Yale University (for New Haven), residential versus commercial properties, land with old versus new properties, and large versus small parcels and ‘expensive’ versus ‘less expensive’ properties (by examining price per square foot). Commercial properties near Hartford’s Brainard Airport are the best candidates for an equitable split tax. We also find that more frequent revaluations are necessary for an equitable split tax.
Highlights
An important issue in the implementation of a split tax is the ability of local assessors to accurately estimate the value of land separately from the value of structures
New London, the complexity and variety of property in New Haven should result in a coefficient of dispersion of fifteen percent or less in 2006 [10]
We examine the coefficients of dispersion (COD) and price-related differential (PRD) for properties in New Haven that are close to parks, close to the airport, and close to the nearest highway exit for the years 2007 through 2010
Summary
An important issue in the implementation of a split tax is the ability of local assessors to accurately estimate the value of land separately from the value of structures. A land tax or a split tax in jurisdictions that are able to more accurately pinpoint the value of land will be more equitable across landowners than in jurisdictions that have more variation in the accuracy of land assessments. If state and local policy makers can gain a clearer understanding of which groupings of properties have more accurately assessed property values, either in a particular city or in sub-groupings of properties within particular cities, this could help them to argue the case that a targeted split tax would be more equitable in terms of assessment accuracy across landowners.
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