scholarly journals Tiebout Sorting, Zoning, and Property Tax Rates

2022 ◽  
Author(s):  
Steven C. Bourassa ◽  
Wen-Chieh Wu
Keyword(s):  
Service Provision ◽  
Property Tax ◽  
Important Variable ◽  
Tax Rates ◽  
Single Family ◽  
Property Taxation ◽  
Tax Mimicking ◽  
Using Data ◽  
Fiscal Zoning ◽  
S Model

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.

scholarly journals Spatial interdependence in property taxation: the case of Polish municipalities

Equilibrium ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 265-283 ◽  
Author(s):  
Agnieszka Małkowska ◽  
Agnieszka Telega ◽  
Michał Głuszak ◽  
Bartłomiej Marona
Keyword(s):  
Tax Competition ◽  
Metropolitan Areas ◽  
Residential Buildings ◽  
Property Tax ◽  
Tax Rates ◽  
Spatial Spillovers ◽  
Property Taxation ◽  
Spatial Interdependence ◽  
Tax Mimicking ◽  
Business Purpose

Research background: Real estate and urban economics literature are abundant in studies discussing various types of property taxes and their characteristics. A growing area of re-search has been focused on tax equity, tax competition, and yardstick competition, where the latter two reflect the idea of tax mimicking. Recently, due to substantial developments in spatial and regional economics, more attention has been drawn to spatial effects. Empirical results are focused on spatial interaction and diffusion effects, hierarchies of place and spatial spillovers. Property tax system in Poland differs from those utilized in the majority of developed countries. As a consequence, property tax policy at the local government level (including tax competition and tax mimicking effects) in Poland can differ substantially from those found in previous research in the US and other European countries. There are few studies addressing the problem of tax competition and tax mimicking in Poland from an empirical perspective. Purpose of the article: In the article, we explore spatial interdependence in property taxation. We identify clustering or dispersion of high and low values of the tax rates within major metropolitan areas in Poland. The effects can indicate the presence of tax mimicking among municipalities in given metropolitan areas. Methods: We analyze the data from 304 municipalities in 10 metropolitan areas in Poland from the year 2007 to 2016. The data covers four property tax rates: (1) on residential buildings (2) on buildings used for business purpose (3) on land used for business purpose (4) on land for other uses. To explore the spatial distribution of rates, we used global and local spatial autocorrelation indicators (Moran’s I statistic and LISA). Findings & Value added: The results suggest the presence of spatial correlation within metropolitan areas. We also found significant differences between metropolitan areas. The results of the study fill the gap in empirical research concerning property tax interdependencies and tax mimicking in Poland.

The Effect of Fiscal Illusion on Public Sector Financial Management

2016 ◽  
Vol 46 (4) ◽  
pp. 635-664 ◽  
Author(s):  
Justin M. Ross ◽  
Siân Mughan
Keyword(s):  
Public Sector ◽  
Financial Management ◽  
Property Tax ◽  
Tax Rates ◽  
Fiscal Illusion ◽  
Policy Makers ◽  
Important Concern ◽  
Using Data ◽  
Cash Reserves ◽  
The Impact

An important concern to the efficiency of public finance systems is that voters may suffer from various “fiscal illusions” that can be exploited by politicians to grow the public sector. This article contributes evidence on the specific public financial management mechanisms by associating the impact property reassessments have on the “visibility” of budget size signaled by property tax rates. Using data from Virginia cities and counties from 2001 to 2011, the results indicate mass reappraisals, which reduce property tax visibility cause contemporaneous property tax levy increases, as do reappraisals that increase future tax visibility. These revenue shocks are then smoothed into expenditures through the management of assets, indicating policy makers prefer the spending to be drawn from future cash reserves than immediate projects that might draw attention to the source of fiscal illusion.

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,.

Municipal Tax Autonomy and Tax Mimicking in Czech Municipalities

2015 ◽  
Vol 14 (1) ◽  
pp. 75-92 ◽  
Author(s):  
Lucie Sedmihradská ◽  
Eduard Bakoš
Keyword(s):  
Property Tax ◽  
Tax Rates ◽  
Full Sample ◽  
Local Coefficient ◽  
Municipal Council ◽  
Political Costs ◽  
Tax Autonomy ◽  
Binary Logit ◽  
Tax Mimicking ◽  
Definition Of

Property tax autonomy of the Czech municipalities is quite narrow and to great extent unused. Perceived political costs of its usage are high and only 8% of municipalities utilized the possibility to increase the tax rates through so called local coefficient. Using the binary logit model and a full sample and two subsamples of Czech municipalities in 2014 the existence of tax mimicking is confirmed regardless the subsample of municipalities considered or the definition of neighbors applied. The likelihood to increase the local coefficient is to some extent influenced by the composition of the municipal council and local demographic, geographic and fiscal situation. However, the overall capacity of the model to indicate municipalities which apply local coefficient is low and suggests that there are many other or different situations or factors which result in application of local coefficient.

The Effects of Property Tax Abatements on School District Property Tax Bases and Rates

2020 ◽  
Vol 34 (3) ◽  
pp. 227-241
Author(s):  
Daphne Kenyon ◽  
Robert Wassmer ◽  
Adam Langley ◽  
Bethany Paquin
Keyword(s):  
Property Tax ◽  
Property Values ◽  
Physical Property ◽  
The United States ◽  
Tax Rates ◽  
Negative Effects ◽  
Real Property ◽  
Community Reinvestment ◽  
Property B ◽  
Using Data

The authors analyze the effects of property tax abatement on the property tax base and rates of school districts within a municipality offering the abatement using data from Franklin County, Ohio, one of the most populous counties in the United States. An increase in a school district’s Community Reinvestment Area abatement intensity correlates with (a) a decrease in the mill rate for real property, (b) a decrease in effective residential and nonresidential property tax rates, and (c) an increase in total market value of property. While these effects are small, they indicate that a municipality’s decision to abate has generated enough growth in property values, either through improvements to physical property or positive capitalization for existing property values, to offset the negative effects of an abatement. The reason for this may be that the restrictions and oversight used in this abatement program are greater than in most other places.

LEGAL AND ECONOMIC ASPECTS OF PROPERTY TAXATION IN THE EUROPEAN UNION

2018 ◽  
Vol 1 (3) ◽  
pp. 231-278
Author(s):  
Tomasz Wołowiec
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Tax Rates ◽  
The European Union ◽  
Real Property ◽  
The Real Estate ◽  
Personal Property ◽  
Property Taxation ◽  
Estate Property ◽  
The Government

A property tax (or millage tax) is a levy on real estate that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the real estate 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 is in contrast to 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 property. Real property (also called real estate or realty) means the combination of land and improvements. 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 property is often taxed based on its classification. Classification is the grouping of properties based on similar use. Real estate properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial and vacant real property. In Israel, for example, property tax rates are double for vacant apartments versus occupied apartments.

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

2021 ◽  
Vol 19 (3) ◽  
pp. 521-541
Author(s):  
Paweł Felis ◽  
Joanna Szlęzak-Matusewicz ◽  
Henryk Rosłaniec
Keyword(s):  
Tax Policy ◽  
Property Tax ◽  
Tax Rates ◽  
Economic Potential ◽  
Property Taxation ◽  
The Social ◽  
Theoretical Assumptions ◽  
Econometric Analyses ◽  
The Impact ◽  
Real Scale

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.

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