Improving the Equity Component of the Lagos State Land Use Charge (2018) for Enhanced Property Tax Yields

2019 ◽  
Vol 16 (2) ◽  
pp. 27
Author(s):  
Gabriel Kayode Babawale
Keyword(s):  
Land Use ◽  
Real Estate ◽  
Research Methodology ◽  
Property Tax ◽  
Tax Incidence ◽  
Public Officials ◽  
Tax Base ◽  
Policy Makers ◽  
Lagos State ◽  
The Government

Property tax has remained a subject of recurrent debate amongst policy makers, scholars, public officials, real estate valuers, and other stakeholders, virtually everywhere over the years. The contention centres on issues such as the tax base, tax incidence, efficiency, and particularly, equity or fairness, among others. Qualities like ease of collection, difficulty of avoidance, accountability, and transparency etc., that ordinarily mark out property tax as a good tax in principle, are often compromised by controversial policies and mal-administration, particularly the latter. The new Lagos State Land Use Charge2018 (LUC, 2018) came into force effective January, 2018. Ina similar version that its immediate predecessor, the Land Use Charge2001 (LUC, 2001), attracted spontaneous and widespread protests on promulgation, the criticisms and protests that greeted the passage LUC (2018)has been vehement and remained unabated until the government was forced, like it did with the erstwhile law, to succumb to substantial but arbitrary reductions in rates and allowances across board (at two different times to date) but without a formal amendment to the law; an exact replica of what transpired under the erstwhile law and which opened it to abuse and arbitrary implementation with its compliance and revenue yields implications. The last of these reductions which took place in August saw a whopping 50%, and 25% cut in assessed rates on commercial properties and industrial properties, respectively. This study employed the doctrinal research methodology whereby the valuation or assessment aspect of the LUC (2018) was diagnosed with a view to finding amicable resolutions to the equity problem that virtually crippled the effectiveness of LUC (2001) over its seventeen years of existence and is already threatening the survival of the new LUC (2018). Keywords: assessment criteria, equity and fairness, Land Use Charge (2018), property tax.

scholarly journals An Assessment of Property Tax Administration in Edo State, Nigeria

2019 ◽  
Vol 51 (1) ◽  
pp. 69 ◽  
Author(s):  
Toju Francis Balogun
Keyword(s):  
Land Use ◽  
Real Estate ◽  
Property Tax ◽  
Tax Revenue ◽  
Tax Administration ◽  
Computer Assisted ◽  
Tax Base ◽  
Valuation Method ◽  
Mode Of Operation ◽  
Edo State

ABSTRACTThe mode of administration of property tax determines its buoyancy. The study utilizes key informant method to examine the mode of operation of Edo State Land Use Charge.  The study observes that property tax revenue mobilization in Benin Metropolis is ineffective due to unsystematic tax administration procedure employed by Land Use Charge Department. The study shows that inadequate personnel, public contempt, limited coverage of the tax base and shrouded valuation method are major problems of the Land Use Charge in Benin metropolis. It also reveals that the current property tax administration will not appreciably enhance the internally generated revenue except the mode of operation is reformed. To overcome these challenges it is recommended among others that the implementation of modern and transparent assessment methods for real estate utilizing remote sensing and GIS integrated with computer-assisted mass appraisal (CAMA) be incorporated through a public-involved debate on property tax reform. Modus administrasi pajak properti menentukan daya apung. Penelitian ini menggunakan metode informan kunci untuk memeriksa modus operasi dari Edo Negara Penggunaan Tanah Charge. Penelitian ini mengamati bahwa pajak properti mobilisasi pendapatan di Benin Metropolis tidak efektif karena prosedur administrasi perpajakan sistematis dipekerjakan oleh Penggunaan Tanah Mengisi Department. Studi ini menunjukkan bahwa personil yang tidak memadai, penghinaan publik, cakupan terbatas basis pajak dan metode penilaian diselimuti masalah utama dari Penggunaan Tanah Mengisi di Benin metropolis. Ia juga mengungkapkan bahwa administrasi pajak properti saat ini tidak akan lumayan meningkatkan pendapatan yang dihasilkan secara internal kecuali modus operasi direformasi. Untuk mengatasi tantangan ini dianjurkan antara lain bahwa pelaksanaan metode penilaian modern dan transparan untuk real estate memanfaatkan penginderaan jauh dan GIS terintegrasi dengan komputer-dibantu penilaian massa (CAMA) dimasukkan melalui debat publik-terlibat pada reformasi pajak properti.

scholarly journals THE ORDER OF ESTABLISHMENT AND INTRODUCTION OF THE TRANSITORIAL ZONES IN THE EDRN ON THE EXAMPLE OF R.P. KRASNOZERSKY NOVOSIBIRSK REGION

2019 ◽  
Vol 7 ◽  
pp. 239-244
Author(s):  
Evgeniy Maiorov ◽  
Elizaveta Plakhova ◽  
Natalia Mitrofanova
Keyword(s):  
Land Use ◽  
Real Estate ◽  
Russian Federation ◽  
Business Environment ◽  
Regional Level ◽  
State Register ◽  
Novosibirsk Region ◽  
The Russian Federation ◽  
The Government

This work examines the issue of entering into the Unified State Register of Real Estate (hereinafter referred to as USRN) information about the boundaries of territorial zones and ways to solve them. In order to improve the business environment at the regional level, the decree of the Government of the Russian Federation of January 31, 2017 No. 147-p approved 12 target models for simplifying business procedures and increasing the investment attractiveness of the constituent entities of the Russian Federation. According to this Order, until 2021, it is necessary to prepare, coordinate and approve the draft Rules of land use and development (hereinafter referred to as the PZZ) and enter information on the boundaries of territorial zones in the USRN.

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

2018 ◽  
Vol 8 (2) ◽  
pp. 114-117
Author(s):  
Tomasz Wołowiec
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Tax Rates ◽  
Ad Valorem Tax ◽  
Real Property ◽  
Personal Property ◽  
The Government ◽  
Special Assessment ◽  
Fair Market Value ◽  
Ad Valorem

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 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. 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. A special assessment tax is sometimes confused with property tax. These are two distinct forms of taxation: one (ad valorem tax) relies upon the fair market value of the property being taxed for justification, and the other (special assessment) relies upon a special enhancement called a "benefit" for its justification.

scholarly journals Collaborations and partnerships for public service training

2016 ◽  
Vol 6 (3) ◽  
pp. 92-98
Author(s):  
Noluthando Shirley Matsiliza
Keyword(s):  
Public Service ◽  
Collaborative Management ◽  
Public Agencies ◽  
Public Officials ◽  
Policy Makers ◽  
Resources Management ◽  
National School ◽  
Service Training ◽  
Multi Level ◽  
The Government

This article notes significant collaborations and partnerships adopted as training strategies applied for improving national skill development. The discourse followed here critically different roles and functions of structures such as public agencies, academic institutions, private sector and non-governmental training providers regulated by law. Scholars in various fields noted benefits and challenges of collaborative management and partnerships in training and skills development that enhance effective resources management, facilitation and participation of stakeholders in various organisations. Using a qualitative approach, this theoretical article argues that academics played a significant role in collaborating with policy-makers to up-skill the civil force. Even though, there are numerous actors at multi-level governance with diverse training needs and interests, there are still gabs in the model adopted by government to provide training of public officials in South Africa. Therefore it is recommended that the Government through the National School of Government should monitor and evaluate the effectiveness of these collaborations and partnerships to provide continuous improvement.

scholarly journals PROBLEMS OF TAXATION OF INDIVIDUAL PROPERTY IN THE UDMURT REPUBLIC

2020 ◽  
Vol 30 (1) ◽  
pp. 72-77
Author(s):  
I.G. Shcherbakova ◽  
G.A. Khripko
Keyword(s):  
Real Estate ◽  
Income Tax ◽  
Property Tax ◽  
Property Taxes ◽  
Tax Base ◽  
Individual Property ◽  
Local Taxes ◽  
Udmurt Republic ◽  
The Russian Federation ◽  
The Individual

The tax on individual property is one of the local taxes of the tax system of the Russian Federation, which is established by regulatory legal acts of representative bodies of municipalities and is a source of income for local budgets. The share of property taxes received by local budgets is not more than 20 %, of which 17.5 % are income from land tax and 2.5 % are income from property tax of individuals. A feature of this tax is that its collection is determined solely by the characteristics of the property, regardless of the individual solvency of the taxpayer. From January 1, 2015 in the Udmurt Republic, the tax base for the tax on property of individuals is the cadastral value of real estate, before that the tax was calculated on the basis of the inventory value. In connection with the involvement of new real estate in the tax turnover and as a result of the cadastral valuation of real estate in the Udmurt Republic, there is an increase in the tax base and income tax on property of individuals. Despite this, the analysis of the property tax of individuals based on the cadastral value made it possible to identify a number of problems of its application in the Udmurt Republic, as well as identify possible solutions.

scholarly journals Land Use Incentives for Real Estate Developers in Social Rental Housing Projects (Case study: Degla Gardens Project-October Gardens-Six October City)

2020 ◽  
Vol 9 (1) ◽  
pp. 83
Author(s):  
Abeer Ahmed Mohamed Abd-Elkawy
Keyword(s):  
Land Use ◽  
Real Estate ◽  
Private Sector ◽  
Low Income ◽  
Social Housing ◽  
Rental Housing ◽  
Housing Demand ◽  
The State ◽  
Housing Projects ◽  
The Government

Social rental housing projects have emerged since 2016 to cover the housing demand of low-income groups, but these projects need high cost that beyond the financial capacity of some governments. Therefore, the World Bank reports in 2014 and 2018 pointed to the importance of including the private sector in low-income housing projects as a real estate developer instead of the state. The contribution of private sector and his successful experience in this field help in reducing the government spending towards these projects and achieving high quality in their implementation. For these reasons, many countries at international level involved the private sector in construction of social housing units in exchange for a set of incentives, which vary widely from one country to another. These incentives are classified into two main groups, the first one is financial and administrative incentives such as providing free land or selling it at low price, besides taxes and financing facilities as applied in Brazil, China, Singapore and Thailand. The second group is new incentives which called Land use incentives such as land use kind, percentage of land exploitation, proposed density and land use regulation in the housing project as applied in the United States, Japan and France because the previous financing incentives are not enough to achieve an appropriate profit for investors.At the local level, the private sector participated in many low-income housing projects such as Youth Housing, National Housing and social housing projects during the period from 1996 until now. In which the Egyptian government provided him some incentives like low price land, payment facilities, tax cuts and allocation part of land for his investment projects in exchange for building number of housing units with an area of (63 m2) for low-income groups. On the other hand, real estate companies retreated from participation in these projects because the incentives are unsatisfactory to them, which made the state played again the role of real estate developer to fill the gap in housing demand by using insufficient government budget.As a result of that, the Egyptian government is trying nowadays to re-engage the private sector again in future social housing projects by studying all submitted proposals from private sector in 2016, the World Bank in 2018 and the views of some institutions such as ministry of investment, ministry of housing and the Social Housing Fund in 2019 around the new incentives, especially after the state decided to withdraw from real estate development and leave it to the private sector by the year 2020. Hence, this paper tries to introduce the new incentives for private sector to participate again in social housing projects. The formulation of these incentives comes from revision the international experiences and reports as well as evaluating the applying of old incentives in one case study of participation housing projects (Degla Gardens project to find an integrated vision for suitable incentives in Egyptian reality that achieve the goals of all development parties ( the government-private sector-population).

scholarly journals Is energy performance too taxing?

2017 ◽  
Vol 10 (2) ◽  
pp. 124-148 ◽  
Author(s):  
Peadar Davis ◽  
Michael J. McCord ◽  
William McCluskey ◽  
Erin Montgomery ◽  
Martin Haran ◽  
...  
Keyword(s):  
Energy Efficiency ◽  
Housing Stock ◽  
Explanatory Power ◽  
Property Tax ◽  
Energy Performance ◽  
Tax Incidence ◽  
Current Evidence ◽  
Tax Base ◽  
Value Analysis ◽  
Content Type

Purpose Buildings contribute significantly to CO2 production. They are also subject to considerable taxation based on value. Analysis shows that while similar attributes contribute to both value and CO2 production, there is only a loose relationship between the two. If we wish to use taxation to affect policy change (drive energy efficiency behaviour), we are unlikely to achieve this using only the current tax base (value), or by increasing the tax take off this current tax base (unlike extra taxation of cigarettes to discourage smoking, for example). Taxation of buildings on the basis of energy efficiency is hampered by the lack of current evidence of performance. This paper aims to model the now-obligatory (at sale or letting) energy performance certificate (EPC) data to derive an acceptable appraisal model (marked to market, being the EPC scores) and deploys this to the entire population of properties. This provides an alternative tax base with which to model the effects of a tax base switch to energy efficiency and to understand the tax incidence effects of such a policy. Design/methodology/approach The research uses a multiplicative hedonic approach to model energy efficiency utilising EPC holding properties in a UK jurisdiction [Northern Ireland (NI)] as the sample. This model is then used to estimate discrete energy assessments for each property in the wider population, using attributes held in the domestic rating (property tax) database for NI (700,000+ properties). This produces a robust estimate of the EPC for every property in its current condition and its cost-effective improved condition. This energy assessment based tax base is further used to estimate a new millage rate and property tax bill (green property tax) which is compared against the existing property tax based on value to allow tax incidence changes to be analysed. Findings The findings show that such a policy would significantly redistribute the tax burden and would have a variety of expected and some unexpected effects. The results indicate that while assessing the energy performance of houses can be a complex process involving many parameters, much of the explanatory power can be achieved via a relatively small number of input variables, often already held by property tax jurisdictions. This offers the opportunity for useful housing stock modelling – such as the savings possible from power switching. The research also identifies that whilst urban areas display the expected “heat island” effect in terms of energy consumption, urban properties are on average more efficient than suburban/rural properties. This facilitates spatial targeting of policy messages and initiatives. Research limitations/implications Analogous with other studies, data deficiencies introduce the risk of omitted variable bias. Modelling of the energy efficiency in the sample is limited to property attributes that are available for the wider population of properties. While this limits the modelling exercise, it is a perennial issue facing mass appraisal worldwide (where knowledge of the transacted sample attributes generally exceeds knowledge of the unsold properties). That said, the research demonstrates the benefits of sharing data and improving knowledge of the housing stock, as taxation databases would be stronger, augmented with EPC-derived property attributes for example. Originality/value The EPC lead in time for wide residential coverage is likely to be considerable. The paper contributes to emerging literature and policy debate surrounding the effect, performance measurement and implementation of energy efficiency certification, through a greater understanding of the sectorial and geographical dispersion of energy efficiency. It provides high level research to help guide policy and decision-making, identifying key locales where there is more of a physical problem and locations where there is more to gain in terms of targeting energy improvement and/or encouraging behavioural change. The paper also allows a glimpse of the implications of a change towards a taxation regime based on energy efficiency, which contributes to the debate surrounding the “greening” of property based taxes.

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.

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.

scholarly journals Economic Effects Real Estate Tax

ECONOMICS ◽  
2016 ◽  
Vol 4 (1) ◽  
pp. 137-150
Author(s):  
Milan Tadić
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Economic Effects ◽  
Real Property ◽  
Tax Base ◽  
Estate Tax ◽  
Tax Rate ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Tax

Summary The real estate tax is usually a fiscal instrument which performs the property tax. When it comes to real property or immovable this term include: apartments, houses, land, cottages, excess housing landscape and more. The real estate tax as a form of the fiscal charges ownership or use of certain forms of real estate, and the revenue from this tax is levied on the area where the property is located regardless of the place of residence of its owner. The tax base for the calculation of this tax usually consists of the market, estimated or annuity value of certain real estate. This form of taxation in the Republic of Serbian applies from 1.1.2012., and its introduction has been replaced by former property taxes. The differences between the two concepts mentioned taxes are numerous and significant. Among the more important are: subject to taxation under the new concept of the real estate rather than law, a taxpayer is any property owner rather than the holder of rights to immovable property tax base is the market value of real estate which is replaced by the payment of taxes per square meter of usable area, the rate of property tax is determined local government, which can not be lower than 0.05% of the estimated value of the real estate nor higher than 0.5% of the appraised value of real estate. The last change, ie. The new law on Property Tax from 5.11.2015. was determined by the tax rate to 20%. The fact that local governments each of them determines the tax rate on real estate which range from high to low rates of multiple, makes this tax is progressive. Progression is particularly expressed in the distinction applied tax rates of developed and undeveloped municipalities, where we have a case that less developed tolerate a higher tax burden, which leads to negative economic effects. However, real estate tax has its own economic and social characteristics which must be aligned with the objectives of tax policy. This means that the real estate tax should be considered from the standpoint of the entire tax system and not from the standpoint of individual income tax forms.

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