An analysis of residential zoning density and local tax revenue

There is a considerable body of research on the effect of land use regulations on property values. However, less work has been done on the relationships surrounding tax revenue, small zoning changes, and the fiscal outlook of cities and counties. As a result, the purpose of this study is to examine the property tax receipts for local governments that result from different residential zoning designations. In particular, it focuses on an undeveloped plot within Corvallis, Oregon to determine whether changing this land from low-density to medium-density use would have any financial implications for the city and county. Using property sales data from the Benton County Assessor’s Office, linear regression is used to investigate this issue. Under this approach, I find that a low-density housing development would add more to market value on the same plot of land, but it would only provide a modest tax revenue advantage over a medium-density apartment complex in the first year after construction