What might happen to the tax structure in an area near an airport if property values increase?

The correct choice highlights a common outcome in real estate economics: when property values increase, property taxes typically follow suit. Assessors often base property tax assessments on the value of the land and any improvements made to it. Therefore, as property values increase—often due to demand generated by proximity to an airport—local governments may reassess properties and adjust tax rates accordingly.

Higher property values can lead to higher property taxes as municipalities seek to maintain or expand their revenue base to fund public services, infrastructure, and development initiatives. This alignment between property value and tax liabilities reflects the principle that taxes are often assessed as a percentage of the property’s value, meaning that an appreciation in property value directly translates to increased tax revenue for the local government.

In terms of the other options, the idea that property taxes would decrease to stimulate development doesn't align with typical tax policy, especially in areas where value is rising. Likewise, maintaining unchanged tax rates despite increasing valuations is uncommon, as this approach would limit a municipality's ability to capitalize on rising property values. The suggestion of new taxes specifically for noise pollution may be relevant in discussions about environmental impacts but does not directly reflect the general principles governing property tax structures related to property value increases.