What impact does the designation of R-5 zoning have on property tax?

The designation of R-5 zoning, which typically allows for multi-family residential development, can lead to an increase in property taxes due to the corresponding higher land value associated with this zoning classification. When property is zoned for higher densities or different types of development, it often becomes more desirable and valuable in the real estate market. As land value increases, so does the assessed value for property tax purposes. This results in higher property taxes for owners as municipalities adjust tax rates based on land use designations that promise greater housing or commercial potential.

While there can be various effects on property taxes based on specific local circumstances and additional factors, the general trend for R-5 zoned properties points towards increased value, leading to increased property tax assessments.