Broadening Benefits from Natural Resource Extraction: Housing Values and Taxation of Natural Gas Wells as Property

• DOI: 10.1002/pam.21911
• Publication Date: 2016-04-10T13:22:44Z
• Authors: Jeremy G. Weber; J. Wesley Burnett; Irene M. Xiarchos
• Keywords: Property tax; Property value

Abstract We study the effects of property tax base shock caused by natural gas drilling in Barnett Shale Texas—a state that taxes oil and wells as property. Over boom bust drilling, housing appreciation closely followed base, which expanded total 23 percent at its height. The expansion led to a decline rates while maintaining or increasing revenues schools. Overall, each $1 per student increase increased value typical home $0.15. Some evidence suggests cumulative density nearby may lower values, indicating could reduce local welfare without policies public revenues.