Should the Philadelphia Property Tax Classification System Be Modified?

Commonwealth ◽  
2018 ◽  
Vol 20 (1) ◽  
Author(s):  
Jeffrey Carroll ◽  
John F. McDonald
Keyword(s):  
Real Estate ◽  
Classification System ◽  
Property Tax ◽  
Commercial Real Estate ◽  
Cook County ◽  
Net Income ◽  
Wage Tax ◽  
Growth Coalition ◽  
City Plan ◽  
Taxation System

This article reviews issues related to proposed changes to the Philadelphia taxation system. There are two proposed plans. The City plan proposes modest cuts to the wage tax and to the net income portion of the business income and receipts tax (BIRT). The plan proposed by the Philadelphia Growth Coalition includes larger cuts in these taxes combined with an increase in the property tax on commercial real estate. The increase in the property tax on commercial real estate is intended to make up for losses of revenue from the tax cuts and is proposed to create a property tax classification system in which different classes of property are taxed at different rates. These proposals have been studied by Econsult Solutions (2015), and their findings are scrutinized in this article. Also, this article includes information on the main example of a property tax classification system in Cook County, Illinois, as a cautionary tale. 

scholarly journals Lack of Uniformity in the Israeli Property Tax System 1997–2017

2020 ◽  
Vol 13 (12) ◽  
pp. 327
Author(s):  
Avi Perez
Keyword(s):  
Developing Countries ◽  
Real Estate ◽  
Central And Eastern Europe ◽  
Property Tax ◽  
Measurement Methods ◽  
Tax System ◽  
Tel Aviv ◽  
Unique Data ◽  
The World ◽  
Taxation System

There are two different forms of property tax systems: value-based tax, which is used in most countries of the world, and area-based tax, which is used mainly in Central and Eastern Europe and developing countries in Africa. Area-based property tax provides more stable and predictable budget revenues. It is simpler to administer and scores worse on equity grounds from the perspective of the ability-to-pay principle of taxation. Against this background, Israel’s property tax system, known as Arnona, is complex, spatially diversified, and causes a lack of uniformity that leads to tax distortion. This paper’s primary purpose is to identify the weaknesses of Israeli property tax from 1997 to 2017 and indicate how to improve the property tax system. This paper is based on case studies from four of the most important cities in Israel: Tel Aviv, Jerusalem, Haifa, and Beersheba, which have four different measurement methods for calculating property tax. Unique data were collected from the Israel Central Bureau of Statistics. According to this analysis, it was found that there are substantial differences in property tax between the four cities over the two decades analyzed. The main weakness is the lack of uniformity of the taxation system; the solution is to unify the measurement of real estate area for tax purposes using drone technology.

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,.

THE CONCEPT OF REAL ESTATE TAXATION BASED ON THE AD VALOREM PRINCIPLE

2021 ◽  
Vol 9 (1) ◽  
pp. 225-249
Author(s):  
Sylwia Skrzypek - Ahmed ◽  
Tomasz Wołowiec
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Tax Rates ◽  
Real Property ◽  
System A ◽  
Estate Taxation ◽  
Pros And Cons ◽  
The Government ◽  
Taxation System ◽  
Ad Valorem

The purpose of this paper is to evaluate the pros and cons of ad valorem real estate taxation in the context of the reform of the Polish real estate taxation system. A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This contrasts with a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible proper-ty. Real property (also called real estate or realty) means the combination of land and im-provements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real proper-ty is often taxed based on its classification. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial, and vacant real proper-ty. In Israel, for example, property tax rates are double for vacant apartments versus occu-pied apartments.

scholarly journals Powierzchniowy a katastralny system opodatkowania nieruchomości w Polsce

Studia BAS ◽  
2021 ◽  
Vol 1 (65) ◽  
pp. 127-146
Author(s):  
Sebastian Gnat
Keyword(s):  
Real Estate ◽  
Econometric Model ◽  
Property Tax ◽  
Ad Valorem Tax ◽  
Tax Rate ◽  
Property Taxation ◽  
Taxation System ◽  
The Impact ◽  
Proper Setting ◽  
Ad Valorem

The article explores the economic aspects of area and value-based taxation of Polish real estate. It begins with the presentation of information on the conditions of property taxation in Poland. Next, a review of the research on the cadastral tax is provided, as well as the assumptions of the econometric model used for mass valuation of the analysed real estate. The main part of the article contains the results of the simulation of replacing the property tax with an ad valorem one. Particular attention is given to the impact of the cadastral tax rate on the revenues of municipalities and changes in the tax burden on individual properties. The main aim of this study was to show the importance of the proper setting of the ad valorem tax rate in the process of reforming the property taxation system.

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