Beltway and Tax Base Impacts

Changes in a number of metropolitan areas (Standard Metropolitan Statistical Areas), SMSAs with and without belt highways before and after highway construction lend little support to fears that these beltways may affect downtown areas adversely. Also, right-of-way acquisition has little, if any, bad effect on tax rolls. A comparison of the 1950 to 1970 changes in seven beltway SMSA with seven matched nonbeltway SMSA indicates beltway areas: (1) gained more population; (2) lost less central city population; (3) had more land urbanized; and (4) gained faster in total employment and in office space than control areas. Beltway areas also gained in retail sales in central cities and central business districts (CBD) more than did nonbeltway areas from 1958 to 1967. Initial losses in tax rolls from right-of-way acquisition may be offset by gains from development attracted to highway locations. In some cases, these offsetting gains in tax rolls occur while right-of-way is being acquired.