The impact of property taxation on business investment in Alberta
| dc.contributor.author | Dahlby, Bev | |
| dc.contributor.author | Ferede, Ergete | |
| dc.contributor.author | Khanal, Mukesh | |
| dc.date.accessioned | 2021-12-17 | |
| dc.date.accessioned | 2022-05-31T01:44:51Z | |
| dc.date.available | 2022-05-31T01:44:51Z | |
| dc.date.issued | 2021 | |
| dc.description.abstract | Alberta municipalities rely heavily on property taxes levied on residential and non-residential sectors to finance local public services. This paper investigates the effects of non-residential property tax rate on business investment using panel data from 17 Alberta cities over the 1998-2017 period. We find that a one mill increase in the non-residential property tax rate is associated with a $49 decrease in commercial and industrial real capita investment. Based on this estimate, we calculate the marginal cost of public funds for the non-residential property tax, which range from 3.12 for Lethbridge to 1.21 for Leduc. We also find that business taxes that are levied on the rental value of a business property have a negative impact on investment, while higher expenditures on municipal services do not have a significant effect on business investment. | |
| dc.format.extent | 810.06KB | |
| dc.format.mimetype | ||
| dc.identifier.citation | Dahlby B, Ferede E, Khanal M (2021). The impact of property taxation on business investment in Alberta. SPP Research Papers, 14(8). https://doi.org/10.11575/sppp.v14i.69686 | |
| dc.identifier.doi | https://doi.org/10.11575/sppp.v14i.69686 | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14078/2510 | |
| dc.language | English | |
| dc.language.iso | en | |
| dc.rights | Attribution-NonCommercial (CC BY-NC) | |
| dc.rights.uri | https://creativecommons.org/licenses/by-nc/4.0/ | |
| dc.subject | tax rates | |
| dc.subject | non-residential property | |
| dc.subject | business investments | |
| dc.title | The impact of property taxation on business investment in Alberta | en |
| dc.type | Article |
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