The Productive Land Use Series will focus on annual property tax revenue at the neighborhood level. Since land is the city’s primary resource, this series will delve into how we are using our land and if we can use it more efficiently. For part 1, click here.
In the previous post, we looked at various types of housing throughout Dallas and evaluated the property tax revenue per acre collected every year in order to analyze a neighborhood’s financial contribution to city operations. Using a well-maintained, single-family neighborhood as our standard, $30,000 collected per acre annually is our baseline to which we judge the financial performance of our land use.
As we look at the productivity of our neighborhoods, we see that the desirability of an area reflects positively in property tax return for the city. More often than not, the attractiveness of a neighborhood is related to the commercial amenities located in the vicinity of the residents. These third places, where people work and play, not only help define the community, but also contribute to the functioning of our city by paying property tax and sales tax.
We should expect higher revenue from our commercial spaces because they see more activity than our homes. From entertainment to employment, commercial spaces bring people together to spend money. As important cogs in our economy, they must also pay their share for the municipal services they require.
First, let’s take a look at the most common commercial space in our city: