Alternative Financing Models for Transportation – A Case Study of Land Taxation in Utah


Recent events have highlighted the consequences of inadequate attention to infrastructure funding. Current funding strategies focus on fuel taxes, transfers from general funds, user fees, toll roads, congestion pricing, and using technology to enhance the fee structure of the current system. This article examines another alternative, a property tax focused on the value of land, known as land tax. A land tax would be economically efficient, in that it would not distort economic decision making. The authors review the feasibility of implementing a land tax and the revenue that could be raised from this tax. They conclude that a land tax is administratively feasible and that it could generate significant revenue to help fund much-needed infrastructure.


Jeffrey I. Chapman

Arizona State University, Phoenix

Gary C. Cornia

Brigham Young University, Provo, Utah

Rex L. Facer

Brigham Young University, Provo, Utah

Lawrence C. Walters

Brigham Young University, Provo, Utah

Key Words: land tax • transportation infrastructure • property tax administration • infrastructure finance