Real Property Tax in Local Public Finance

2020 ◽  
Author(s):  
Yilin Hou
Keyword(s):  
Public Finance ◽  
Local Governments ◽  
Public Services ◽  
Property Tax ◽  
Unintended Consequences ◽  
Value Assessment ◽  
Real Property ◽  
Local Public Finance ◽  
Local Revenue ◽  
Key Aspects

The real property tax (RPT) is a major, stable revenue source for local governments to provide basic public services. The quality, quantity and reliability of public services in a locality are key indicators of the living standards. The service responsibilities require local governments to maintain stable revenues. RPT is a tax on owning and holding land and structures on land, and RPT is a very old tax, dating back to ancient times when land and products thereof were the most important assets. RPT has been used by governments of all countries throughout history, although with huge variation in formats and ways of use. Despite numerous pitfalls in its design and administration, RPT has remained a pillar of local revenue, accounting for a high percentage of total local revenue. Thus, it is important to understand RPT and its roles in local public finance. RPT was mistakenly dubbed the worst tax, a misnomer that has caused misperception of the tax that should be corrected. RPT is one essential pillar of a modern tax system. The design and maintenance of an optimal RPT should follow six principles. The complexity of RPT is with key aspects in its administration, with the weakest link in property value assessment. Exemptions and limitations add to the complexity of RPT, causing unintended consequences. From a panoramic view, RPT has adapted to changes of the society and economy; it still holds prospects as an optimal tax and remains the cornerstone of accountable and sustainable local public finance.

Raising local revenue: The use and adequacy of voluntary property taxes in arkansas

2017 ◽  
Vol 29 (4) ◽  
pp. 498-521
Author(s):  
Kim U. Hoffman ◽  
Joseph Yuichi Howard
Keyword(s):  
Local Governments ◽  
Public Services ◽  
Property Tax ◽  
The State ◽  
Property Taxes ◽  
Revenue Source ◽  
Local Revenue ◽  
Expenditure Data ◽  
State And Local

AbstractWith the late-2000s recession, state and local governments have struggled to find the necessary revenue to sustain citizens' demands of governmental services. One potential revenue source is to allow the citizens' themselves to choose the services to fund through the usage of voluntary taxes. Counties and cities in Arkansas have the authority to levy a voluntary property tax to support specific public services. In this study, we explore the prevalence and adequacy of the voluntary property tax by local governments in Arkansas. We identify 58 different voluntary taxes used in 27 counties and 17 cities throughout the state. Moreover, using revenue and expenditure data, we find the tax to be a significant revenue source for several county programs.

scholarly journals Sustainable Land Planning in Case of Decentralized Land Authorities

2021 ◽  
Author(s):  
Xieer Dai
Keyword(s):  
Public Finance ◽  
Land Use ◽  
Local Governments ◽  
Central Government ◽  
Property Tax ◽  
Tax Revenue ◽  
Planning Time ◽  
Local Public Finance ◽  
Ownership Of Land

The main focus of this paper is to analyze the effect of local public finance on spatial land use through economic models and empirical evidence from Israel. The theoretic models extends the Alonso-Mill-Muth model by incorporating local public finance. The first finding is that steady population growth provides a channel for land capitalization through the mechanism of long term land property right. This implies a possible conflict of interest if ownership of land leasing revenue and the ad valorem property tax are not consistent. The empirical section examines one of the implications derived from the models highlighting a possible inconsistency between central and local governments due to land ownership centralization. This causes local tax revenue inequality among Israeli municipalities. Statistical evidence shows that cities with a larger share business land use can generate more tax without assistance from the central government, and are therefore more fiscal independent. Fiscal status has a significant effect on the planning time of residential construction. Municipalities with higher local tax revenues have shorter planning time(higher probability of acceptance) conditional on the plan’s size and other features.

scholarly journals Assessing the Revenue Raising Capacity of the Local Government of Bongabon in the Philippines

2018 ◽  
Vol 8 (3) ◽  
pp. 99
Author(s):  
Ana Liza M. Cruz ◽  
Franz Jake M. Cruz ◽  
Olive Chester Cuya Antonio
Keyword(s):  
Local Governments ◽  
Collection Efficiency ◽  
Local Level ◽  
The Philippines ◽  
National Government ◽  
Real Property ◽  
Tax Collection ◽  
Local Revenue ◽  
Generation Capacity ◽  
To Come

One source of funding for sub national government is imposition of taxes. It is imposed upon individual and corporation within the territorial jurisdiction of the municipality.  Local governments are funded through Internal Revenue Allotment (IRA) provided by the National Government. The purpose of the study is to assess the local revenue generation capacity of the municipality of Bongabon, Nueva Ecija in the Philippines. The paper revealed that its calculated collection efficiency is only 20.6% of the total collectibles on Real Property Tax. The average local revenue raising capacity of the municipality of Bongabon, Nueva Ecija within the period of 7 years (2011 to 2017) is only 40.9 % of the externally sourced revenue or IRA. The study concluded that the municipality of Bongabon, Nueva Ecija remains dependent on national government when it comes to funding. The study also identified various constraints to efficient tax collection while local citizens perceived the LGU capacity to collect tax negatively. More studies on tax capacity are encouraged to come up with sufficient baseline data that may serve as inputs to policy making and solve the problems of tax collection in the local level.

scholarly journals Samodzielność finansowa gmin w kontekście realizacji dochodów budżetowych

2017 ◽  
Vol 5 (4) ◽  
pp. 51-60
Author(s):  
Anna Milewska
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Public Administration ◽  
Local Governments ◽  
Public Services ◽  
Financial Independence ◽  
The Public ◽  
Independent Entity

Local government in Poland functions as an independent entity in the public finance sector. It performs tasks (most often taking the form of public services) for its residents on its own responsibility. For this purpose, this unit is obliged to organize financial guarantee the implementation of both (own and commissioned tasks in the field of public administration). While in the second case, as a rule, can count on support in the form of targeted subsidies from the central budget, local government should secure own tasks independently. This means that local governments have the possibility (in the aspect specified by legal acts) for financial independence in terms of organizing and collecting budget revenues.

scholarly journals Analisis Efektivitas Penerimaan Pajak Bumi Dan Bangunan (PBB) di Kecamatan Tolangohula Kabupaten Gorontalo

2018 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Barmin Yusuf
Keyword(s):  
Local Governments ◽  
Property Tax ◽  
Tax Revenue ◽  
Local Revenue ◽  
Tax Revenues ◽  
Potential Source ◽  
The People

Land and Building Tax is a potential source of revenue for the region as one of the direct taxes. Land and Building Tax is a central tax because the object is in the area, then the region gets a bigger share. In Gorontalo Regency, mainly Tolagohula Sub-district, as in other parts of Indonesia, the land and property tax (PBB) is one source of local revenue. The management of the land and building tax (PBB) in Tolangohula sub-district is expected to lead to the welfare of the people in Gorontalo Regency.The purpose of this study is to determine how the effectiveness of tax revenue Earth and Building (PBB) in District Tolangohula Gorontalo District. Using the Ratio of the effectiveness of Land and Building Tax revenues (PBB) shows the ability of local governments in mobilizing Land and Building Tax (PBB) in accordance with the targeted. The ability to obtain Land and Building Tax (PBB) is categorized effective if this ratio reaches at least 1 or 100%. Overall, the acceptance effectiveness of Land and Building Tax (PBB) in District Tolangohula Regency Gorontalo during the period of 2012 to 2014 is in the effectiveness category.

scholarly journals ANALISIS PEMUNGUTAN DAN PENCATATAN PAJAK BUMI DAN BANGUNAN PEDESAAN DAN PERKOTAAN (PBB - P2) PADA PEMERINTAH KABUPATEN MINAHASA TENGGARA

2018 ◽  
Vol 13 (04) ◽  
Author(s):  
Lisa Tivani Langi ◽  
David P. E. Saerang ◽  
Jessy D.L Warongan
Keyword(s):  
Qualitative Research ◽  
Local Governments ◽  
Public Services ◽  
Central Government ◽  
Local Communities ◽  
Regional Finance ◽  
Local Revenue ◽  
The Difference ◽  
The Government ◽  
Descriptive Qualitative

At first PBB-P2 was levied by the central government. The transfer of UN-P2 in Southeast Minahasa district begins on January 1, 2014 and is expected to increase the Local Revenue (PAD) and at the same time improve the structure of Regional Revenue and Expenditure Budget (APBD), improve public services, accountability and transparency in the management of PBB-P2. The purpose of this study was to analyze how the collection and recording of PBB-P2 at the Government of South Minahasa District. The purpose of this research is to know and analyze the collection and recording of PBB-P2 in South Minahasa. The type of research used is descriptive qualitative research. The result of the research shows that the PBB-P2 collection in Southeast Minahasa Regency still has obstacles, namely Taxpayer Notification Name (SPPT) which isn’t in accordance with the name of tax object, the existence of double SPPT, the SPPT but the location of the tax object is unknown, the lack of awareness in making the payment of PBB -P2 by taxpayers domiciled outside the region but has a tax object in the region. Recording of PBB-P2 revenue is still the difference between budget realization of PBB-P2. It is recommended that the Regional Finance Board of Southeast Minahasa hold socialization to local governments and local communities regarding the implementation of PBB-P2 collections, so that taxpayers have a concern in the case of PBB-P2 payments on time and active in reporting the object/subject of tax when there are problems encountered.Keywords : Collection, accounting records, PBB-P2

Urban land speculation: model development

2020 ◽  
Vol 38 (5) ◽  
pp. 613-626
Author(s):  
Bedane S. Gemeda ◽  
Birhanu G. Abebe ◽  
Giuseppe T. Cirella
Keyword(s):  
Local Governments ◽  
Model Development ◽  
Property Tax ◽  
Dynamics Modeling ◽  
Research Strategies ◽  
Content Type ◽  
Local Revenue ◽  
Administrative Area ◽  
The Difference

PurposeThe aim of the research is to examine the role of property tax in land and building administration and to develop a dynamic model. The paper investigates the extent to which local governments take advantage of property tax in generating revenue and encouraging certain life cycle assessment-oriented land and building speculation patterns in Shashemene, Ethiopia.Design/methodology/approachThe study was conducted using case study and survey research strategies. Shashemene's administrative area (i.e. specific to four peri-urban villages) was purposively selected as the case study area. A combination of different data collection instruments was employed: questionnaires and field observation. Moreover, an extensive survey of owners of undeveloped land and building, throughout the study area, was conducted. Multiple regression analysis was applied to the analyzed data as well as the use of dynamic modeling of land and building via qualitative and numerical analysis of property.FindingsResults indicate that speculators will hold land and building for a marginal period only if the difference between present net rates of return exceeds the difference between discounted expected percent return.Practical implicationsThis paper provides a simple model to recognize the optimum length of time to hold a parcel of land and building from the market by land speculators.Originality/valueThe introduction and potential implementation of dynamics modeling to the local government calls for controlling speculation that has resulted in local revenue enhancement.

Limits of Property Taxes and Charges: City Revenue Structures After the Great Recession

2017 ◽  
Vol 55 (1) ◽  
pp. 185-209 ◽  
Author(s):  
Yunji Kim
Keyword(s):  
Public Finance ◽  
Great Recession ◽  
Local Governments ◽  
Property Tax ◽  
Property Taxes ◽  
Historical Trends ◽  
Stable Property ◽  
The Great Recession ◽  
Expenditure Limitations ◽  
Urban Places

Public finance theories argue local governments should primarily use broad-based and stable property taxes. However, the housing bust after the Great Recession challenges this argument, and historical trends show cities have heavily relied on charges since the late 1970s. Using 2012 Census of Governments data for 2,396 cities, this article explores which cities rely more on charges and the links between property tax dependence and city stress. Regression results show property tax dependence is linked to capacity, while charges dependence is linked to stress. Charges can be a useful revenue tool for cities under stress, but they may be regressive and their use may be limited to urban places with services that can be charged for and cities with growth pressures and less stringent tax and expenditure limitations. Absent equalization efforts from higher-level governments, barriers to using charges, which cities have little control over, may increase inequality among cities.

Distributional Consequences of Reforming Local Public Finance in China

1996 ◽  
Vol 147 ◽  
pp. 751-778 ◽  
Author(s):  
Albert Park ◽  
Scott Rozelle ◽  
Christine Wong ◽  
Changqing Ren
Keyword(s):  
Public Finance ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Planning System ◽  
Chinese Government ◽  
Fiscal Discipline ◽  
Rural Industry ◽  
Local Public Finance ◽  
Entrepreneurial Spirit ◽  
The 1960S

Central-local budgetary arrangements have undergone numerous changes since the 1960s as the Chinese government in its quest for modernization has sought to balance the needs of central control and local autonomy. During the reform period, the falling tax share of GNP and a commitment to greater decentralization of the planning system led to major changes in the public finance system that have devolved expenditure responsibilities and financial authority to local governments. Fiscal decentralization has been credited with hardening budget constraints for local publicly controlled enterprises and government agencies. New budgetary relations have instilled fiscal discipline, allowing local governments to disburse more expenditures only if they generated more revenues. These reforms have helped unleash the entrepreneurial spirit of local bureaucrats, fuelling the rapid growth of rural industry.

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