Intraurban manufacturing location decisions and local tax differentials

This study examines the role that fiscal factors play in the intrametropolitan location decisions of manufacturing firms. Emphasis is placed on analyzing location choices of relocating firms, rather than existing patterns of economic activity or estimating changes in net employment. The results indicate that the property tax rate is a significant location factor to relocating firms selecting sites within an urban area and that income tax differentials have a negative but weak influence on those decisions. The location disincentives of property taxes are strongest for large firms and tend to decrease with firm size.