Search results

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

The role of local authorities is crucial in addressing the essential needs of communities, and they possess the right to impose property taxes on all properties within their territory. Property taxes are levied on all properties, contributing to approximately 60% of the local authority’s finances. However, their role in this policy is not frequently understood, primarily in executing property tax reassessment. Hence, this paper aims to reveal property tax reassessment implementation and identify its key challenges.

The latest tone of the list record was extracted from the local government division, Ministry of Housing and Local Government Malaysia, to answer the research objective. The data were received on November 2021 by email. Furthermore, through the literature review, the most significant challenges in property tax reassessment were identified, compared and presented.

The results highlight that property tax reassessment implementation in West Malaysia is at the level of concern where only two councils have the latest tone of the list. However, larger councils have a higher performance compared to smaller councils. The findings also reveal various challenges in property tax reassessment, such as insufficient human resources, inadequate property systems and software and lack of financial capacity. Others include a shortage of competent assessors, lower public education, political interference and socioeconomic uncertainty.

This study offers practical implications to policy and decision-makers in the West Malaysian local authorities. Despite inferior performance by West Malaysian local authorities, there is a need for conducting property tax reassessment activity to ensure the quality and uniformity of the assessment. This study suggests that local government stakeholders and managers should devote more attention to formulating long-term plans and promoting the property tax reassessment practice. The property tax reform could solve the current situation of substandard reassessment activity.

This study explains, compares and interprets the actual statistical data through the figures and summarises the challenges of property tax reassessment activity among local authorities.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.