A value capture property tax for financing beach nourishment projects: An application to Delaware's ocean beaches

George R. Parsons*, Joëlle Noailly

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We propose and apply a value capture property tax for financing beach nourishment projects. Our application is to beaches in the state of Delaware. Using a hedonic price function we estimate the implicit value of proximity to the beach. Using these results we then infer a property tax schedule that taxes homeowners roughly in proportion to the benefits they receive from the projects. We argue that the tax is equitable in the sense that tax burden and project benefits are aligned. We argue that it is efficient in the sense that homeowners face the real cost of maintaining beaches that protect and improve their property.

Original languageEnglish
Pages (from-to)49-61
Number of pages13
JournalOcean and Coastal Management
Volume47
Issue number1-2
DOIs
Publication statusPublished - 28 May 2004

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