Assessing the Residential Property Tax Revenue Impact of a Shopping Center

Assessing the Residential Property Tax Revenue Impact of a Shopping Center This study investigates the impact of a shopping center on surrounding housing prices. Instead of using simple Euclidean distance to measure proximity to the shopping center, this study creates multiple sizes of driving time buffers around the shopping center to better reflect real accessibility and to capture the distance-decay effects of the accessibility. We apply a spatial hedonic model with a series of driving time buffer variables to capture the influence of a shopping center in a metropolitan county in Tennessee. The findings suggest that households place a positive value on proximity to a shopping center with a travel time distance of 3–20 min in the case of the Turkey Creek Shopping Center, the largest and most recently developed shopping center in the Knoxville metropolitan area. Based on estimates of enhanced house values as they relate to proximity to the shopping center, we were able to calculate total annual property tax revenues ranging between $1.12 and $1.17 million for the county and city governments owing to the development of the Turkey Creek Shopping center. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Real Estate Finance and Economics Springer Journals

Assessing the Residential Property Tax Revenue Impact of a Shopping Center

Loading next page...
 
/lp/springer_journal/assessing-the-residential-property-tax-revenue-impact-of-a-shopping-PliBey7oYW
Publisher
Springer US
Copyright
Copyright © 2010 by Springer Science+Business Media, LLC
Subject
Economics; Regional/Spatial Science; Financial Services
ISSN
0895-5638
eISSN
1573-045X
D.O.I.
10.1007/s11146-010-9292-x
Publisher site
See Article on Publisher Site

Abstract

This study investigates the impact of a shopping center on surrounding housing prices. Instead of using simple Euclidean distance to measure proximity to the shopping center, this study creates multiple sizes of driving time buffers around the shopping center to better reflect real accessibility and to capture the distance-decay effects of the accessibility. We apply a spatial hedonic model with a series of driving time buffer variables to capture the influence of a shopping center in a metropolitan county in Tennessee. The findings suggest that households place a positive value on proximity to a shopping center with a travel time distance of 3–20 min in the case of the Turkey Creek Shopping Center, the largest and most recently developed shopping center in the Knoxville metropolitan area. Based on estimates of enhanced house values as they relate to proximity to the shopping center, we were able to calculate total annual property tax revenues ranging between $1.12 and $1.17 million for the county and city governments owing to the development of the Turkey Creek Shopping center.

Journal

The Journal of Real Estate Finance and EconomicsSpringer Journals

Published: Nov 17, 2010

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve Freelancer

DeepDyve Pro

Price
FREE
$49/month

$360/year
Save searches from
Google Scholar,
PubMed
Create lists to
organize your research
Export lists, citations
Read DeepDyve articles
Abstract access only
Unlimited access to over
18 million full-text articles
Print
20 pages/month
PDF Discount
20% off