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Article
Publication date: 1 July 2000

William B. Ardern

Annual real estate taxes are one of the largest and fastest‐growing occupancy costs for corporationsowning or leasing real estate in the United States. An active programme…

Abstract

Annual real estate taxes are one of the largest and fastest‐growing occupancy costs for corporations owning or leasing real estate in the United States. An active programme of management, control and reduction of annual real estate tax assessments can be successful, if a corporation is proactive and follows certain steps on a timely basis.

Details

Journal of Corporate Real Estate, vol. 2 no. 3
Type: Research Article
ISSN: 1463-001X

Keywords

Book part
Publication date: 28 February 2022

Mark DeSantis, Matthew McCarter and Abel Winn

The authors use laboratory experiments to test two self-assessment tax mechanisms for facilitating land assembly. One mechanism is incentive compatible with a complex tax

Abstract

The authors use laboratory experiments to test two self-assessment tax mechanisms for facilitating land assembly. One mechanism is incentive compatible with a complex tax function, while the other uses a flat tax rate to mitigate implementation concerns. Sellers publicly declare a price for their land. Overstating its true value is penalized by using the declared price to assess a property tax; understating its value is penalized by allowing developers to buy the property at the declared price. The authors find that both mechanisms increase the rate of land assembly and gains from trade relative to a control in which sellers’ price declarations have no effect on their taxes. However, these effects are statistically insignificant or transitory. The assembly rates in our self-assessment treatments are markedly higher than those of prior experimental studies in which the buyer faces bargaining frictions, such as costly delay or capital constraints.

Article
Publication date: 1 December 2001

Irena Vlassenko

This paper evaluates on a comparative basis three different property tax systems, British, French and Swedish. For this purpose an evaluation model, based on two criteria…

3512

Abstract

This paper evaluates on a comparative basis three different property tax systems, British, French and Swedish. For this purpose an evaluation model, based on two criteria – namely efficiency and fairness – and on a number of sub‐criteria, is used. A comparison of the systems’ efficiency reveals that the French system is the least efficient while the Swedish system is the most efficient. A comparison of the systems’ fairness shows that, despite significant variations in the systems characteristics, all three systems can be evaluated as relatively fair.

Details

Property Management, vol. 19 no. 5
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 1 March 2015

Hai (David) Guo and Howard A. Frank

The Florida electorate passed Amendment One on January 29th, 2008. The portability provision of this Amendment allows homestead owners to transfer the difference between…

Abstract

The Florida electorate passed Amendment One on January 29th, 2008. The portability provision of this Amendment allows homestead owners to transfer the difference between assessed value and estimated market value of their current homestead property to their new property. Since passage, there has been limited and declining utilization of the portability provision. This paper explores whether the accrued tax savings due to the property assessment limit provide sufficient incentive for homesteaders to move by examining aggregated utilization of the portability provision among counties. Based on a panel regression using 67 counties from 2008 to 2012, our findings indicate the portability provision has had limited impact on Florida's depressed housing market and only a small number of well-educated and white homesteaders have availed themselves of this mechanism.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 27 no. 2
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 9 May 2013

G.K. Babawale

This study seeks to contrive a sustainable valuation model for developing countries: a model that reasonably combines simplicity with equity, cost effectiveness…

1733

Abstract

Purpose

This study seeks to contrive a sustainable valuation model for developing countries: a model that reasonably combines simplicity with equity, cost effectiveness, transparency, and the peculiarities of the local market place for improved revenue yields.

Design/methodology/approach

The study draws from theory, experiences of other nations and international best practices to arrive at what should be the most appropriate tax base, valuation basis, valuation method, and the most expedient valuation approach for developing countries.

Findings

Using Lagos State, Nigeria to demonstrate the application of the contrived conceptual framework, the study, among others, recommended for her urban areas, a combination of modified mass appraisal technique, modified UK's “property banding” technique, and discrete valuation to reflect the diverse distribution of her property stock. Others include a ten‐yearly comprehensive revaluation and indexation for the annual or periodic adjustments during the intervening periods.

Social implications

Property tax remains, among known local taxes today, the most viable, stable, predictable, progressive, and veritable source of own revenue for a truly independent local government administration. However, while developed countries have been able to tap these potentials to a good advantage for both fiscal and non‐fiscal goals; it is regrettable that the experience of most developing countries has not been equally satisfactory. Inappropriate valuation process, among others, remains a component of the tax system that is misguided and surrounded with much misgiving; hence a revisit.

Originality/value

Given the peculiar characteristics of the property valuation environment of developing countries, the highly simplified but pragmatic valuation model proposed is expected to birth a sustainable property tax system anchored on equity, cost effectiveness, ease of administration, and enhanced valuation ratio, with potentials for improved compliance and tax revenue yields.

Details

International Journal of Law and Management, vol. 55 no. 3
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 6 August 2019

Paul Bidanset, Michael McCord, Peadar Davis and Mark Sunderman

The purpose of this study is to enhance the estimation of vertical and horizontal inequity within property valuation. Property taxation is a crucial source of finance for…

Abstract

Purpose

The purpose of this study is to enhance the estimation of vertical and horizontal inequity within property valuation. Property taxation is a crucial source of finance for local government around the world – based on a presumptive tax base underpinned by estimates of property value, inaccurate real estate valuations used for such ad valorem or value-based property tax calculations potentially lead to a variety of costs, both financial and other, for tax payers and governments alike. More common are increased costs in time, staff and, in some cases, legal fees. Some governments are even bound by acceptability thresholds to promote fairness, equitability and overall government accountability with respect to valuation.

Design/methodology/approach

There exist a number of vertical inequity measurements that have undergone academic testing and scrutiny within the property tax industry since the 1970s. While these approaches have proved successful in detecting horizontal and vertical inequity, one recurring disadvantage pertains to measurement error/omitted variable bias, stemming largely from a failure to accurately account for location. A natural progression within property tax research is the application of a more spatially local weighted modelling approach to examine vertical and horizontal inequity. This research, therefore, specifies a geographically weighted regression (GWR) methodology to detect and measure vertical inequity in property valuations.

Findings

The findings show the efficacy of using more applied spatial approaches for vertical tax estimation and indeed the limitations of employing conditional mean estimates coupled with delineated boundaries for assessing property tax inequity. The GWR model findings highlight the more fluctuating nature of vertical inequity across the Belfast market for the apartment sector both in a progressive and regressive sense and at different magnitudes. Moreover, the results reveal spatial clustering in the effects and are indicative of systematic inequities related to location inferring that spatial (horizontal) tax inequities are not random. The findings further show increased GWR model predictability overall.

Originality/value

This research adds to the existing literature base for evaluating both vertical and horizontal inequity in value-based property taxation at the intra-neighbourhood level. This is accomplished by modifying the Birch–Sunderman approach by transforming the traditional OLS model architecture to a GWR model, thereby allowing coefficient estimates of inequity to vary not only across a jurisdiction, but also at a more local level, while incorporating property characteristic variables. This arguably allows assessors to identify specific geographical areas of concern, saving them money, time and resources on identifying, addressing and correcting for inequity.

Details

Journal of Financial Management of Property and Construction , vol. 24 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 1 March 2022

Shardy Abdullah, Muhammad Rosmizan Abdul Wahab, Arman Abdul Razak and Mohd Hanizun Hanafi

The purpose of this study was identifying factors that encourage property tax payment among property owners, specifically from the residential property segment within the…

Abstract

Purpose

The purpose of this study was identifying factors that encourage property tax payment among property owners, specifically from the residential property segment within the Malaysian context. This aim is derived from existing evidence which clearly indicates a steady annual increase in property tax arrears from non-complying property owners as reported by the local governments (LGs).

Design/methodology/approach

This research was conducted using a survey method where a questionnaire was used as the research instrument in garnering the necessary study data. The collected data was analyzed through quantitative means towards gleaning study findings to fulfil the set objectives. The analyses used within this study were reliability analysis, descriptive analysis and factor analysis.

Findings

Research findings indicate that there are five factors that encourage property tax payment, namely, the proactive action capability of LGs; stimulation of payment; quality of staff and service; reliable tax foundation and governance; and smart expenditure. The identification of these factors has the potential to act as a mitigation mechanism for LGs to alleviate the issue of property tax arrears.

Research limitations/implications

The findings of this study may be used by LGs in developing a comprehensive action plan to encourage property owners to pay taxes. The study findings are exploratory in nature, based on the locality of the LG selected in this study, the Penang Island City Council (MBPP). As such, the findings may not be considered as a generalization of the property tax situation throughout Malaysia as study data was only collected from the administrative region of MBPP. However, these findings can still be used as a basis in establishing similar studies within other LGs which demonstrate similar characteristics with MBPP.

Originality/value

In the Malaysian scenario, the focus of the previous studies on property tax arrears revolves around actions that have been taken by LGs to encourage the payment of property tax. However, in this study, the determination of encouraging factors is no longer referred to LG perspectives but was investigated from the taxpayer dimension. This approach allows new mitigating ideas to be developed and adds value in the context of a different perspective towards establishing a more practicable action plan in reducing property tax arrears.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 6 January 2022

Tahiru Alhassan, Samuel Banleman Biitir and Emmanuel Kanchebe Derbile

The paper examined how local authorities have attempted to rate undeveloped land as a means of mobilising revenues and the challenges associated with implementing this…

Abstract

Purpose

The paper examined how local authorities have attempted to rate undeveloped land as a means of mobilising revenues and the challenges associated with implementing this policy guideline. It focused on current practices in terms of policy and administration, the availability of undeveloped urban land, its revenue potential, and ways to improve policy for local land taxation.

Design/methodology/approach

Drawing from the mixed-method approach both qualitative and quantitative data were collected. Officials of the Wa Municipal Assembly, Lands Commission, Land Use and Spatial Planning Authority were purposely selected based on their knowledge and the roles they play in property rating practice. They were interviewed to understand their perceptions and views on rating undeveloped lands. Stratified proportionate and simple random sampling methods were used to select respondents. The respondents included land and landed property owners in three selected neighbourhoods.

Findings

The paper found that there was the prevalence of undeveloped lands mainly held by speculators and individuals constrained by financial challenges to develop their parcels. The Wa Municipal Assembly is unable to implement the policy guideline on charging rent on undeveloped lands due to lack of adequate information and generally unwillingness to implement this provision. Besides, the current guideline is too prohibitive and cannot be implemented in its current form. However, there is a window of opportunity for the Assembly to build data on undeveloped lands and moderately begin the implementation of the policy guideline.

Practical implications

Urban growth in Ghana is characterised by leapfrog development with many patches of undeveloped land in and around cities. The property taxation policies largely do not focus on undeveloped land or unimproved site value. In Ghana, property rate policy on the tax base excludes undeveloped land. However, government policy guidelines prescribe the charging of rent on these lands by local authorities. This paper provides a comprehensive discussion on the revenue potential of undeveloped urban land and why local government authorities have not been able to harness this potential. The paper has therefore recommended ways local authorities can use to mobilise revenue from undeveloped urban land.

Originality/value

There is limited research in rating undeveloped urban land especially looking at it from the perspective of policy and implementation as well as current practices. The paper shed light on the prevalence of undeveloped urban land and the guidelines that exist help local governments mobilise revenue from these lands. It contributes to the understanding that local government can harness the revenue potential of undeveloped land if policy design and implemented regarding these lands is enhanced. The paper also provides a good background and framework for further studies.

Details

Property Management, vol. 40 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Book part
Publication date: 19 July 2005

Warren J. Samuels

This is the second set of lecture notes from courses in public finance published in an archival volume in this series. Volume 19-C (2001) was entirely devoted to notes…

Abstract

This is the second set of lecture notes from courses in public finance published in an archival volume in this series. Volume 19-C (2001) was entirely devoted to notes from lectures by E. R. A. Seligman at Columbia University. Two differences mark Seligman’s lectures and the lectures by Henry C. Simons at Chicago, as reported below. Seligman seems to have been lecturing primarily to students in tax administration, hence he presented very little economic theory; whereas Simons was lecturing to graduate students in economics, and presented relatively more theory. Seligman did not refrain from some passing of judgment but his lectures were largely descriptive and non-judgmental; whereas Simons has no hesitation in presenting his own normative approach on various issues. These issues tended strongly to focus on inequality, tax justice, and progressivity.

Details

Documents from F. Taylor Ostrander
Type: Book
ISBN: 978-0-76231-165-1

Article
Publication date: 22 March 2011

G.K. Babawale and T. Nubi

The Lagos State land use charge (LUC) 2001 represents a radical and wholesome restructuring of the entire erstwhile land‐based tax system in the state, and the first of…

1175

Abstract

Purpose

The Lagos State land use charge (LUC) 2001 represents a radical and wholesome restructuring of the entire erstwhile land‐based tax system in the state, and the first of its kind in Nigeria. The purpose of this paper is to examine how this maiden holistic intervention in property tax administration in Nigeria has fared in its first nine years.

Design/methodology/approach

Primary data were garnered from stakeholders through personal interviews and structured questionnaires, while secondary data include information from the enabling act and other‐related materials.

Findings

It was noted that the intervention failed to conform to best practice both in policy and administration. As a result, the reform has not ceased to generate controversies, has enjoyed limited acceptability, and achieved limited success.

Originality/value

Taking a cue from the experiences of countries that have demonstrated best practices in property tax reform, the paper proffers suggestions, covering both policy (e.g. extensive stakeholders' consultation) and administration (e.g. improved links between tax payment and provision of local services) that would help to sustain the reform intervention and make it sufficiently worthwhile.

Details

International Journal of Law and Management, vol. 53 no. 2
Type: Research Article
ISSN: 1754-243X

Keywords

1 – 10 of over 11000