scholarly journals Land value is a progressive and efficient property tax base: Evidence from Victoria

2019 ◽  
Author(s):  
Cameron Murray ◽  
Jesse Hermans
Keyword(s):  
Capital Investment ◽  
Property Tax ◽  
Property Taxes ◽  
Tax Rates ◽  
Land Value ◽  
Property Value ◽  
City Governments ◽  
Tax Base ◽  
Percentage Point Increase ◽  
Point Increase

Property taxes are a common revenue source for city governments. There are two property tax bases available—land value (site value, SV), or total property value (capital improved value, CIV). The choice of property tax base has implications for both the distribution and efficiency of the tax. We provide new evidence in favour of SV being both the more progressive and efficient property tax base. First, we use three Victorian datasets at different levels of geographic aggregation to model the SV-CIV ratio as a function of various household income measures. At all three levels, a higher SV-CIV ratio occurs in areas with higher incomes, implying that SV is the more progressive property tax base. Our range of results suggests that a one percent increase in the income of an area is associated with a 0.10 to 0.57 percentage point increase in the SV-CIV ratio. Second, we use historical council data to conduct a difference-in-difference analysis to compare the effect of switching from a CIV to SV tax base on the number of building approvals and value of construction investment. We find that switching from CIV to SV as a property tax base is associated with a 20% increase in the value of new residential construction. This is consistent with the view that changes to land value tax rates are non-neutral with respect to the timing of capital investment on vacant and under-utilised land, which we also demonstrate theoretically.

scholarly journals A Land Value Capture Property Tax Schedule for Municipal Infrastructure Financing in Lagos State, Nigeria

2020 ◽  
Vol 5 (2) ◽  
pp. 75-105
Author(s):  
Funlola Famuyiwa ◽  
Keyword(s):  
Precise Measurement ◽  
Property Tax ◽  
Property Values ◽  
Property Taxes ◽  
Hedonic Regression ◽  
Tax Rates ◽  
Land Value ◽  
Value Capture ◽  
Lagos State ◽  
Infrastructure Services

This study develops a land value capture property tax rates schedule for use in Lagos state, Nigeria, in order to aid sustainability in municipal infrastructure financing. With the poor state of infrastructure in Lagos, the LVC property tax is advanced as a sustainable means of infrastructure reform through equitable rates. Using a sample from Alimosho - the largest local government area in Lagos - a hedonic regression model is used to determine the financial contributions of municipal infrastructure in property values to show their varying influences. From the regression analysis, the schedule is then derived, which is broadly premised on a quid pro quo basis. This stems from the fair notion that the pecuniary influences of municipal infrastructure should be recovered in the form of property taxes for public gains. Not previously done in the region, the schedule determines rates payable on property taxes and are reflective of the monetary influences that municipal infrastructure confer on property values. The proposed rates schedule also take into account varying distances of locational infrastructure and their impacts on property values. The use of Geographic Positioning System (GPS) in the study represents an advancement of previous Nigerian studies on infrastructure and property values where fewer infrastructure types have been considered or less precise measurement indices have been used. The study concludes that this LVC property tax approach will engender a sustainable, equitable, and efficient source of local financing for infrastructure delivery and operations. This is because it builds a veritable rates base and it enables ratepayers to face the actual costs of benefits received from infrastructure services.

Bailout policies will raise Greek taxpayer's burden

2016 ◽  
Keyword(s):  
Income Tax ◽  
Small Firms ◽  
Property Tax ◽  
Tax Burden ◽  
Tax Rates ◽  
Content Type ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Indirect Taxes ◽  
Business Tax

Significance Tax arrears are expected to rise to 95 billion euros (106 billion dollars) by year-end following the introduction of new taxes. An ever-rising tax burden is encouraging evasion while discouraging investment, which prefers a tax regime that is both low and predictable. Impacts Nearly 70% of taxpayers may not meet their obligations in full this year, according to the Athens Chamber of Commerce and Industry. A 3-percentage-point increase in the basic rate of business tax will hit small firms in particular. Individuals face not only higher income tax rates but a plethora of new indirect taxes and increases in property tax. Evasion will increase the sense that austerity weighs more on some than others, making the policy politically less sustainable.

scholarly journals Lags in Real Property Revaluations and Estimates of Shortfalls in Property Tax Collections in North Carolina

2002 ◽  
Vol 34 (1) ◽  
pp. 205-213
Author(s):  
Michael L. Walden ◽  
Zulal Denaux
Keyword(s):  
North Carolina ◽  
Property Tax ◽  
Property Taxes ◽  
Tax Rates ◽  
Real Property ◽  
Time Intervals ◽  
Tax Base ◽  
Tax Rate ◽  
Long Time ◽  
The Subject

AbstractFinancing local public goods is a major issue in many communities, especially those that have experienced rapid growth. This paper analyzes problems associated with locally collected real property taxes where the real property tax base is only revaluated at long time intervals. Using counties in North Carolina as the subject of the analysis, we find that effective real property tax rates fall between revaluations. We calculate that a system of taxing market values of real property at a constant legislated tax rate would have yielded additional annual revenues of $320 million for North Carolina counties over 1980 to 1995.

scholarly journals The Fiscal Effects of Tax Increment Financing on Rural School Districts: The Case of Iowa

AERA Open ◽  
2021 ◽  
Vol 7 ◽  
pp. 233285842199114
Author(s):  
Phuong Nguyen-Hoang
Keyword(s):  
Rural Communities ◽  
School Districts ◽  
Property Tax ◽  
Rural School ◽  
Tax Rates ◽  
Rural School Districts ◽  
Tax Increment Financing ◽  
Tax Base ◽  
Positive Effects ◽  
Development Tool

Tax increment financing (TIF)—an economic (re)development tool originally designed for urban cities—has been available to rural communities for decades. This is the first study to focus solely on TIF in rural school districts, to examine TIF effects on school districts’ property tax base and rates, and to conduct event-study estimations of TIF effects. The study finds that TIF has mostly positive effects on rural school districts’ property tax base and mixed effects on property tax rates, and that TIF-induced increases in tax base come primarily from residential property and slightly from commercial property. The study’s findings assert the importance of returned excess increment if rural school districts in Iowa and many other states are to benefit from TIF.

scholarly journals The Influence of Corporate Income Taxes on Investment Location: Evidence from Corporate Headquarters Relocations

2021 ◽  
Author(s):  
Travis Chow ◽  
Sterling Huang ◽  
Kenneth J. Klassen ◽  
Jeffrey Ng
Keyword(s):  
Income Tax ◽  
Strong Support ◽  
The State ◽  
Economic Consequences ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
Tax Rate ◽  
Percentage Point Increase ◽  
Point Increase ◽  
State Income

This study examines the effects of jurisdictions’ corporate taxes and other policies on firms’ headquarters (HQ) location decisions. Using changes in state corporate income tax rates across time and states as the setting, we find that a one-percentage-point increase in the HQ state corporate income tax rate increases the likelihood of firms relocating their HQ out of the state by 16.8%, and an equivalent decrease in the HQ state rate decreases the likelihood of HQ relocations by 9.1%. Exploiting the unique tax policy features within the state apportionment system lends strong support to the interpretation that taxation drives this effect. Our analyses also demonstrate that state income tax features affect the destination of the HQ move. We contribute to the literature on corporate decision making by showing how state income taxation affects a real corporate decision that has significant economic consequences for the company and the state. This paper was accepted by Brian Bushee, accounting.

Show Me the Money

2016 ◽  
Vol 3 (2) ◽  
pp. 197-215
Author(s):  
Justin Simmons
Keyword(s):  
Sex Offenders ◽  
Sex Offender ◽  
Negative Impact ◽  
Property Tax ◽  
Property Values ◽  
Property Taxes ◽  
Tax Revenue ◽  
Property Value ◽  
Pros And Cons ◽  
The Impact

Many people have written scholarly articles highlighting the pros and cons of SORs. Some have taken the analysis a step further by pointing out the impact SORs have on the values of homes in the vicinity of a registered sex offender (“RSO”). While these studies have pointed out the impact the presence of an RSO can have on the property value for an individual homeowner, research regarding the impact RSOs have on property tax revenue for taxing districts is nonexistent. This Article highlights the correlation between the depressive effect the presence of RSOs has on property values, the impact this reduction in property value has on property tax revenue for taxing districts in Texas, and, as a corollary, the negative impact the decrease in revenue could have on the government’s ability to provide vital public services. The Article concludes by discussing different strategies states like Texas could use to allow taxing districts to recover some of this lost revenue. In particular, this Article suggests that states like Texas could (1) charge RSOs a premium on their property taxes to offset any losses their presence in the community causes; (2) pass laws that prevent RSOs from living in certain areas; (3) adjust the criteria used by taxing districts to appraise residential property; or (4) increase minimum sentences for sex offenders in an effort to reduce the number of registered sex offenders in the community.

ECONOMIC ESSENCE AND ROLE OF PROPERTY TAXES IN UKRAINE

2021 ◽  
pp. 201-209
Author(s):  
Volodymyr DMYTRIV
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Developed Countries ◽  
Property Taxes ◽  
Tax Rates ◽  
Advantages And Disadvantages ◽  
Property Taxation ◽  
Democratic State ◽  
State And Local ◽  
Taxation System

Introduction. The development of local self-government is one of the important prerequisites for the formation of a democratic state. Effective activity of local self-government bodies is impossible without a sufficient amount of financial resources, which are formed at the expense of the local budget’s own tax revenues. The local taxes and fees are the basis of financial independence of local authorities in the most developed countries of the world, the main among which are considered property taxes. The formation and development of national tax systems takes longer in the most developed countries than in Ukraine, which in its turn, affects the quality of tax legislation and as a consequence is accompanied by a misunderstanding on the part of society’s tax innovations. The construction of the taxation system should be based on the citizens’ awareness of the fiscal importance of property taxes in the formation of the revenue side of the state and local budgets. The purpose of the article is to determine the features of the collection of property taxes in Ukraine, research their role in the formation of the revenue side of local budgets and to outline areas for improving property taxes in Ukraine using foreign experience. Results. The general features of the evolution of the property taxation system are considered. It is argued that a key element of the real estate taxation mechanism if the procedure for determining the tax base, which is mostly the valuation of the object. It is necessary to review property tax rates, conduct an inventory and ensure the full functioning of the system of mass registration of real estate, introduce a correction factor to take into account historical, territorial and other characteristics of real estate, increase tax literacy and tax culture of the population. Prospects. The attention will be paid to the differentiation of property tax rates, the feasibility of introducing preferential taxation, the advantages and disadvantages of property taxation and more in further research,.

scholarly journals Development of Immovable Property Tax in Latvia

2013 ◽  
Vol 28 (1) ◽  
pp. 48-59
Author(s):  
Sandra Štucere ◽  
Gunita Mazūre
Keyword(s):  
Local Governments ◽  
Property Tax ◽  
Future Application ◽  
Tax Rates ◽  
Tax Base ◽  
The Future ◽  
The Law ◽  
Year 2013

Abstract Immovable property tax is one of the national taxes the administration of which is subjected to continuous changes. Frequent amendments to the law “On Immovable Property Tax” (1997) also evidence the mentioned changes. The procedure for tax calculation, tax base, and tax rates has been considerably changed in the course of time. The research provides a discussion on the changes in tax formation, development, and administration in Latvia to understand better the essence of immovable property tax. The research aim was to analyse the development of immovable property tax and the course of reforms for the period of 1998-2012. The research also studies the expected changes in the application of immovable property tax from the year 2013. It is envisaged to transfer the rights to local governments to determine the immovable property tax rates in their administrative territories within the range of 0.2-3% from 2013. The research concludes that frequent reforms of immovable property tax have promoted the development of a new, stable, and predictable methodology for the future application of immovable property tax in Latvia. The analysis of revenues from immovable property tax for the period of 2006-2011 is based on the annually growing significance of immovable property tax. The research suggests that immovable property tax is the only tax the revenues of which have increased within the period of 2009-2011 and the largest revenues from immovable property tax are collected in Riga City municipality comprising 53% of the total revenues from immovable property tax collected in Latvia.

scholarly journals Quasi-Experimental Evidence on the Connection between Property Taxes and Residential Capital Investment

2015 ◽  
Vol 7 (1) ◽  
pp. 300-330 ◽  
Author(s):  
Byron Lutz
Keyword(s):  
School Finance ◽  
Capital Investment ◽  
Property Tax ◽  
The State ◽  
Property Taxes ◽  
Finance Reform ◽  
School Finance Reform ◽  
Home Construction ◽  
Quasi Experimental ◽  
Residential Capital

Do low property taxes attract new home construction? This question is answered using a large shock to property tax burdens caused by an unusual school finance reform in the state of New Hampshire. The estimates suggest that, in most of the state, communities with a reduced tax burden experience a substantial increase in residential construction. In the area of the state near the region's primary urban center (Boston), however, the shock clears through a price adjustment—i.e., by capitalizing into property values. The differing responses are attributed to differing housing supply elasticities. (JEL H71, H73, R31)

scholarly journals PROBLEMS OF TAXATION OF INDIVIDUAL PROPERTY IN THE UDMURT REPUBLIC

2020 ◽  
Vol 30 (1) ◽  
pp. 72-77
Author(s):  
I.G. Shcherbakova ◽  
G.A. Khripko
Keyword(s):  
Real Estate ◽  
Income Tax ◽  
Property Tax ◽  
Property Taxes ◽  
Tax Base ◽  
Individual Property ◽  
Local Taxes ◽  
Udmurt Republic ◽  
The Russian Federation ◽  
The Individual

The tax on individual property is one of the local taxes of the tax system of the Russian Federation, which is established by regulatory legal acts of representative bodies of municipalities and is a source of income for local budgets. The share of property taxes received by local budgets is not more than 20 %, of which 17.5 % are income from land tax and 2.5 % are income from property tax of individuals. A feature of this tax is that its collection is determined solely by the characteristics of the property, regardless of the individual solvency of the taxpayer. From January 1, 2015 in the Udmurt Republic, the tax base for the tax on property of individuals is the cadastral value of real estate, before that the tax was calculated on the basis of the inventory value. In connection with the involvement of new real estate in the tax turnover and as a result of the cadastral valuation of real estate in the Udmurt Republic, there is an increase in the tax base and income tax on property of individuals. Despite this, the analysis of the property tax of individuals based on the cadastral value made it possible to identify a number of problems of its application in the Udmurt Republic, as well as identify possible solutions.

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