Cities levy taxes to pay for things people need. Some of those things are schools, parks, streets, police & fire protection. Understandably, nobody really likes taxes, so cities try their best to keep taxes low. In a town like Waterville, in what is considered a service center town, taxes can be a bit higher. This is largely due to having more hospitals, churches, non-profit organizations, judicial buildings, schools and colleges, than many of the surrounding communities. These places don’t pay property taxes and that is ok, because they bring people to the community for those services and the jobs they represent.
It can be argued then that service center towns will have a much more difficult time attracting residents who use tax rates as a measure of attractiveness to settle in a particular town. One solution to that problem is to focus on adding more value per acre of taxable property, thereby reducing the property tax rate and the burden on a towns citizens.
While increasing the density of value may be a difficult political sell in some respects, it represents a solution to a vexing problem of overtaxing a tax-weary citizenry. The map below is a simple parcel map of Waterville, ME that shows the value of each parcel in terms of its area (value/acre). The most valuable parcels of the town are primarily the downtown (red parcels), which also happens to be the most dense part of town.
Considering that infrastructure and other city services become less expensive as density increases (less roadway to pave, less patrolling needed, etc.), it begs the question of why we create zoning codes that promote low density development? If residential housing is restricted to 4 homes/acre (.25 acre lots) and the street that those houses reside on costs the same as a street that is zoned for 6 houses/acre (.17 acre lots), which street has a better chance of being supported by the tax revenue of the properties on the street?
When we look at downtown, you note that most parcels are either red or dark orange, representing value/acre at over $1M or $750K respectively. These represent breadwinners for the cities coffers and probably subsidize much of the low density areas infrastructure costs. Not that downtown development is right for every part of town, but any chance a city has to increase density will increase value on a per acre basis.
As a planner, I feel it is my responsibility to find solutions to how cities develop that cater to people of the broadest possible political persuasions. Reducing tax rates while maintaining a high level of city services appeals to a broad coalition. Reducing our ecological footprint by taking up less space is also appealing to many.