The homeowner‘s tax price is the increase in property taxes associated with a marginal increase in public production. Taking the first difference of the right-hand side of (2.4) with respect to G shows that the tax payment will increase at the rate of the tax share. Because the marginal cost of production for G is assumed to be a constant rate of q, the marginal tax price will also be the average price. Therefore the tax price of local services for household I can also be obtained by dividing both sides of (2.4) by G. This is displayed in equation (2.5). This shows that the P_i term from equation (1) is also the homeowner‘s tax price.