Resolution on Property Tax Reform

Adopted by the Urban and Regional Affairs Committee
of the Chamber of Commerce of the United States

Marvin Morris

[17 February, 1971]
The policy statement of the Chamber of Commerce of the United States says clearly and unequivocally that:

"Disincentives that inhibit private enterprise from helping to solve social and economic problems should be eliminated."

To implement this Chamber policy and give it specific application to encouraging private enterprise to take a more active part in urban development and so lessen the need and pressure for costly subsidies, the Urban and Regional Affairs Committee recommends that the Chamber should take this same strong and unequivocal stand for reforming the administration of the local property tax. Such reform should include shifting the principal weight of property taxation OFF the owner-created value of the improvement onto the community-created value of the location, i.e. to what land in that location would be worth if its past and present owners had never done or spent anything to improve it.

We believe it obvious that heavy taxes on improvements inhibit and often prevent private investment in improvements. Conversely we believe heavier taxation of location values could put effective pressure on the owners of underused or misused locations to put their property to better use or sell it to someone who will.

We believe that many businessmen have insufficient understanding of the harm today's widespread misadministration of the property tax may be doing in their communities.

Therefore, the Urban and Regional Affairs Committee urges that the National Chamber devote all feasible resources to developing and using information materials to inform the membership of the costs and the alternatives to ineffective property tax systems.