Trans. Planning Journal
|Title||SELF-LIQUIDATION ABILITY AND RISK ANALYSIS OF VALUE CAPTURE TO TRANSPORT PROJECTS: EXAMINATION OF TAX INCREMENT FINANCING|
|Author||Chao-Chung Kang、Cheng-Min Fen、Yu-Sheng Chen|
|Summary|| In literature of transportation, the government agencies or researchers only focused on operating revenue and cost items when evaluated the cost-benefit or self-liquation analysis for transport projects. The external effects of an investment project are always ignored by some studies because those of external factors are regarded as un-measured items. Thus, this would result in the distortion of financial evaluation.
Recently, the government conducts the tax increment financing (TIF) scheme, one of value capture methods, to incorporate the external effects into the SLR (Self-Liquidation Ratio) analysis for transport projects. However, the TIF is a financing technique with high uncertainty on expected revenue in the future period around the tax incremental financing districts (TID). This would result in huge risk in finance for central and local government agencies if TIF below the estimating expected value.
This study presents a multi-objective programming model using mathematical programming technique to internalize the externality factors including house tax, land value Increment tax, and land price tax into the SLR analysis. This study conducts a case study with a Mass Rapid Transit (MRT) project to measure the TIF, risk, SLR, and subsidy levels for the MRT project. The results show that the TIF is an inverse Gaussian probability distribution using the Monte-Carlo simulation. In particular, the TIF, risk, SLR, and subsidy levels can be determined by the proposed model for local and central government agencies simultaneously.