8 2007, Jeffrey Dorfman Tax and Appraisal Issues Related to Working Landscapes Jeffrey H. Dorfman The University of Georgia LAND USE Studies Initiative The University of Georgia

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia Economic Benefits of Farm and Forest Lands These lands produce valuable products for consumers, generate jobs and tax revenues 1/6 of all jobs and gross state product in GA Attract businesses and families Provide a net surplus to local government finances

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia Georgia Revenue to Expenditure Ratios for Land Use Classes

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia County Break-even Home Values

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia Can a Bedroom Community Survive? The previous slide shows Georgia cities and counties can get new residential growth without needing to raise tax rates. Adding houses below the breakeven price means taxes must be raised on everybody. Schools are a different story.

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia School Break-even Home Values

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia What do Land Preservation Programs Cost Local Residents?

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia Possible Policy Ideas Growth controls Differential Tax Rates Tax credits or offsets

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia Differential Tax Rates Idea is to tax land and improvements at different rates. Can work in cities and rural areas with reversing of tax rate differences. Needs a constitutional amendment.

8 2007, Jeffrey Dorfman LAND USE Studies Initiative The University of Georgia Tax Credits or Offsets Provide land owners with (income or property) tax credits in return for environmental services. Local tax breaks can be funded by state similar to expanded homestead exemption.