Suppose a county has a classified property system where owner-occupied property is rated at 15%, farm property and undeveloped land at 10%, and all other property (including rental, commercial, and industrial) rated at 20%. a) What kind of incentives do individuals face when trying to reduce their tax burden? b) Why should it be difficult to compare tax burdens between this city and another city that does not have an unclassified system?
Suppose a county has a classified property system where owner-occupied property is rated at 15%, farm property and undeveloped land at 10%, and all other property (including rental, commercial, and industrial) rated at 20%. a) What kind of incentives do individuals face when trying to reduce their tax burden? b) Why should it be difficult to compare tax burdens between this city and another city that does not have an unclassified system?
Chapter16: The Public Sector
Section: Chapter Questions
Problem 18SQ
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Suppose a county has a classified property system where owner-occupied property is rated at 15%, farm property and undeveloped land at 10%, and all other property (including rental, commercial, and industrial) rated at 20%.
a) What kind of incentives do individuals face when trying to reduce their tax burden?
b) Why should it be difficult to compare tax burdens between this city and another city that does not have an unclassified system?
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