Tiebout Sorting, Zoning, and Property Tax Rates

This paper examines certain implications from the literature on Tiebout’s model of local gov-ernment service provision, particularly Hamilton’s extension of the model to include local control of land use and property taxation. Our empirical analysis focuses on the use of fiscal zoning to lower property tax rates, a topic that has not been addressed in the extensive Tiebout literature. Using data for over 100 municipalities in the Miami, Florida, metropolitan area, we specify property tax rates as a function of fiscal zoning measures, other municipal characteristics, and tax mimicking. We conclude that single-family zoning is by far the most important variable ex-plaining municipal property tax rates.

The Importance of the Principles of Efficiency and Fairness in Property Taxation

Introduction: to conduct an effective tax policy in the modern world, the state needs to rethink the development strategy in property taxation, which should be based on a system of taxation principles, in particular, the principle of efficiency (in conjunction with the principle of fairness). The novelty of the research lies in the fact that despite the theoretical research works on the subject under consideration, this area has not been sufficiently studied in the formation of a unified concept of the principle of efficiency in taxation (including property), which manifests the relevance of the work and the need for the study. The paper also considers the implementation of the principle of justice through the prism of property taxation in Rostov and Volgograd regions and examines the tools for applying the principle of justice in property taxation in law enforcement activities. Purpose: to study the statistics of tax efficiency together with the implementation of the principle of fairness in the modern tax system (through the example of property taxation in Rostov and Volgograd regions). Methods: the research is based on the method of system analysis and dialectics, synthesis, analogy, deduction, induction, the historical method, the method of unity of theory and practice, as well as special legal methods (the formal-legal method, the empirical methods of cognition and the dogmatic methods). Results: the formation of the concept of property taxation based on the principles of efficiency and fairness based on the analysis, statistical data, court decisions, and relations between the taxpayer, tax authorities, and the state due to the lack of sufficient study of the research in the scientific environment. Conclusions: the principle of equity of property taxation should take into account the peculiarities of modern legal and social realities, as well as the practical relations in taxation, together with the indicators of the effective principle of the same name by applying such principles in the theoretical and practical aspects.

The Polish system of property taxation

The purpose of this paper is to outline the Polish system of real estate taxation and main problems associated with its implementation. Despite socio-economic changes, this area of the tax system has not been reformed in recent years. Consequently, real estate tax in particular is a levy that presents great difficulties in assessment and collection. This is evidenced by the numerous rulings of administrative courts, which, in quantitative terms, place real estate tax right after value added tax. The study is primarily based on an analytical research method drawing on legal acts, the literature on the subject, and the achievements of judicature.

Land Value Taxation: A Spatially Explicit Economic Experiment with Endogenous Institutions

An economic experiment with endogenous institutions informs the political economy of land value taxation relative to uniform property taxation in terms of efficiency and sprawl reduction. Heterogeneous type distributions were used so that land value taxation was earnings-rational, relative to uniform property taxation, for 40, 60, and 80 percent of the participants. The model’s induced values predict land value taxation leads to less sprawl, more earnings, and more tax revenue than uniform property taxation. Experimental data do not consistently match this prediction, where both tax institutions led to more sprawl and lower earnings than predicted. Results show participants voted for the tax institution that does not maximize their individual earnings in 16.7 percent of rounds. These earnings-irrational choices occurred when the type distributions were 40 and 60 percent in favor of land value taxation. The experiment results nonetheless show the absolute advantage of land value taxation for producing less sprawl, more tax revenue, and more earnings. Moreover, the behavioral evidence suggests that relative advantage of land value taxation in reducing sprawl is greater than predicted by the model. This suggests further inquiry about whether land value taxation promotion activities may best be targeted towards cities using uniform property taxation where economies are vibrant, land uses are already relatively intensive, and greater-than-average population density already exists.

Policy Forum: First Nation Property Taxation and Governance in British Columbia

In this article, I ask, "What is the relationship between rules governing band council elections and property taxation across First Nations in British Columbia?" I outline the three major categories of First Nation electoral rules: default Indian Act elections, First Nations Elections Act rules, and custom election codes. I contend that First Nations who use custom election codes are more likely to exhibit stable governance than those who do not. This mechanism can be helpful in introducing property taxation. It can also reduce property tax uncertainty—a feature known to depress on-reserve property values. I also present some suggestions for First Nations wishing to improve perceptions of taxation in their communities.

Differentiation of Fiscal Effects of Local Tax Policy in Countries Using Area-Based Property Taxation: the Case of Poland

The paper addresses differences in financial effects of local tax policy. Its aim was to examine the effects of decisions taken within the realm of tax authority in a country which applies area-based property taxation. The paper validates the hypothesis, according to which the impact of local tax policy upon tax revenues of local units depends on the social and economic potential of regions (in Poland called “voivodeships”). We believe that municipalities (called “gminas” in Polish) are more active in pursuing local tax policy (i.e., in reducing property tax rates) in regions whose social and economic position is weaker. Statistical and econometric analyses confirmed our theoretical assumptions and provided the evidence that the hypothesis is correct. By using econometric models, in this paper we also succeeded in identifying variables which help in explaining the real scale of reductions of property tax rates.

Stimuli contributing to local property taxation – with the focus on spatial effects of industry and functional urban areas

In this study, we argue that a historical background of the region matters in tax mimicking and yardstick competition as a matter of principle. We seek to determine factors supporting the policy of the high local property tax in the Czech Republic. Based on the statistical and spatial data of 6,258 municipalities between 2009 and 2019, the results show that the municipalities burdened by large industrial facilities, as well as municipalities in the functional urban areas (FUAs), apply the policy of higher property taxation twice frequently than the rest. On the other hand, the industrial stimuli keep enfeebling after 2010, and the number of local governments preferring high property taxation is variegated across different FUAs. The causal analysis based on Granger's approach concludes an existence of cumulative effects of both industry and the FUAs, which push the municipalities with large industrial facilities located within an FUA to increase the property taxes. From the mimicking point of view, we found that mimicking policy is an important phenomenon among the municipalities of Czech Republic; however, it has different impacts on both stimuli (Industry and FUA). The analysis suggests that it rather incites the municipalities within the FUA to increase the local property taxes.