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To what extent is the Intercity Marketplace skewed in the US
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<p>[quote user="John WR"]</p> <p>All I would add to the previous post is that the thing that gives land value is acess, not agricultural productivity. </p> <p>When a highway is built the land abutting the highway is no longer land locked. It now can be developed so it gains value. Of course, some land is more valuable than other land but all of it will gain value. [/quote]</p> <p>Clearly, this discussion has strayed a long way from whether it makes sense to assess property taxes on roadways. No one is questioning the need for roadways and the benefits associated with them. This is especially true in Texas, where our excellent road system has been a major factor in the economic growth of the state.</p> <p>Your are correct in that highways help develop adjacent property. And as I mentioned in a previous post, the increased value of the adjacent property usually generates enough tax revenue to cover any loss associated with the property that was removed from the tax rolls for the highway. Each adjacently located business, residence, etc. pays taxes into a general fund. To the extent that direct user taxes (fees) don't cover the cost of the highway, monies are transferred from the general fund(s) to make up the shortfall.</p> <p>Assessing roadways for property tax purposes is a nonstarter. Moreover, the property taxes paid by America's freight railroads have nothing to do with passenger trains in the U.S. Amtrak pays no taxes, and the freight railroads are not permitted to pass any taxes through to it.</p> <p>Would passenger trains be profitable if the railroads paid no property taxes? Based on Amtrak's NEC track record, it does not appear so. Amtrak or a public agency own the NEC. They pay no taxes on their infrastructure or their operations. They have not been able to gin sufficient revenues to cover their costs. </p>
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