The GATE Grind

GATE 2021 AR – Question 28

Urban Land Use and Transportation · Land value capture · 1 mark · MTA

What is the urban-governance tool that permits additional FAR above the prescribed FAR in return for a fee?

  1. Betterment levy
  2. Impact fee
  3. Land-value increment tax
  4. Floor-area incentive tax

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Correct answer: MTA

Explanation

The final key awards marks to all. The described instrument is commonly a premium or charge for additional development rights/FAR, but the options do not provide one unambiguous standard name. Retain MTA instead of forcing an answer. Betterment levies and impact fees describe related but distinct mechanisms.

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