Do Land Value Taxes Curb Land Prices? Capitalization, Speculation, and Spatial Inequality in Loja, Ecuador

The tax base for land transaction tax is determined by the official present value (OPV) before and after the transaction. The official present value may be either larger or smaller than the transaction price; furthermore, it does not fully take into consideration the seller's improvement costs and management expenses during the period in which they held the land. There is thus a considerable gap between this system and fair, equitable taxation. This is particularly true because no tax need be paid on transactions (and transfers of title) during tax holidays (i.e. the period between consecutive annual adjustments of the official present value), creating a serious flaw in the taxation system. The reason why such a serious failing has developed is because of the confusion in the land valuation system under Taiwan's land rights equalization tax system. For example, when land value tax is levied on the ownership of land, the tax base, official land value, is derived mainly from the official present value. On average, official land value (OLV) in Taiwan is only one quarter of official present value. On urban land subject to land value tax, the official land value varies between 8.9% and 37.6% of the price that the land would reach if sold by court auction or by the government; official present value varies between 22.71% and 76.63% of the price at which land is sold by the National Property Bureau. In other words, there is neither an open land market price nor a reasonable appraised market value. Owing to the fact that information is not made freely available, the prices paid in ordinary market transactions are kept secret. As one of the most important bases for market value appraisal - the regular market sale price - is not available, the official present value and official land value become meaningless, and the economic and fiscal functions of land value tax (LVT) and land value increment tax (LVIT) are warped. Even more serious, the effective land value tax rate is too low, while the effective land value increment tax rate is too high. If one studies the two in combination, one can see that the combination of an excessively low average effective land value tax burden (around 0.1%) and an excessively high effective land value increment tax burden (around 10%) results in a serious lock-in effect, causing a loss of equilibrium in market supply and demand. In this article, simple mathematical models are used to show that the current tax system encourages land speculation and the pushing up of land prices. I believe that the reform of the land tax system is an urgent task if fairness and justice are to be achieved. The method of reform adopted should be to reduce the land transaction tax burden, while raising the tax burden on the ownership of land, in order to eliminate land speculation, revitalize the real estate market and promote economic development.

The land supply elasticity with respect to the land price (land rent) is a key parameter in determining the land supply impacts of economic shocks and policies and the resulting impacts on food prices and food and nutrition security. For example, Elobeid at al., 2011 shows that halving the area expansion elasticities leads to 15% lower land expansion in Brazil necessary for 25% increase in ethanol consumption. However, values for land supply elasticities are rarely available in the literature. Due to lack of reliable time series data on land prices and concerns about the quality of Utilised Agricultural Area data, they are only available estimated for some countries of the world. \n\nIn this overview we calculate land supply elasticities for several world regions and countries adapting method proposed in the literature and showing available published estimates. \n\nA comparison between current and new values of MAGNET land elasticities can be found in Appendix C. Appendix D gives a quick operating instruction on how to run MAGNET using the new land set of land supply elasticities in MAGNET.

Appraisers can learn a great deal of information from government assessment reports, especially when the assessment is ideal. In Taiwan, property tax has been separated into land value tax and house tax. Land value tax revenue is the second largest tax revenue (next to the land value increment tax) for local government. The land value increment tax, which takes the increase in land price as the tax base, is very similar to the capital gain tax in the United States. In Taiwan the assessment of land declared price, which is the tax base of the land value tax, is neither efficient nor equitable. The objective of this study is to improve assessment for the land value tax base, which is a very significant data bank for appraisers.

This paper investigates whether investors are compensated for the tax burden of equity securities. Effective tax rates on equity securities vary due to frequent tax reforms and due to persistent differences in propensities to pay dividends. The paper finds an economically and statistically significant relationship between risk-adjusted stock returns and effective personal tax rates using a new data set covering tax burdens on a cross-section of equity securities between 1927 and 2004. Consistent with tax capitalization, stocks facing higher effective tax rates tend to compensate taxable investors by generating higher before-tax returns.

The tax burden determines the payment of taxes by the market subject to various budgets and serves as the basis for verification by the State Tax Service. The corporate income tax rate, which is equal to 18% in Ukraine, is called normative. The effective tax rate can be determined from the standpoint of macroeconomic analysis of the tax burden for the industry and from the standpoint of microeconomic analysis of the tax burden for individual enterprises. It is relevant to study the effective tax burden of food industry enterprises, which form significant shares of GDP and tax payments in the consolidated budget of the country. The purpose of the study is a microeconomic analysis of the influence of factors on the effective tax rate of food industry companies of Ukraine and the verification of the hypothesis about the degree of deviation of the effective rate from the normative tax rate of food enterprises. Methodology. The methods of generalization, descriptive statistics and systematization, factor and correlation-regression analyses are used in the investigation. Economic and statistical analysis was carried out using Microsoft Office software packages. The results. An algorithm for calculating the effective corporate tax rate is proposed. The list of financial operations at food enterprises of Ukraine, which produce a change in the financial result before taxation, is determined. It was revealed that in recent years the effective tax burden approaches to the normative tax rate, 18%. A methodology of microeconomic calculations was developed for assessing the tax burden of a company based on indicator-factors, including: company assets, income from product sales, number of employees, share of liabilities in assets, share of tangible assets in assets, share of current assets in assets, profitability of assets and equity capital, labor intensity, growth rate of real GDP. Correlations between the effective tax rate and the factors are determined. The largest number of influencing factors and the number of correlations are obtained for four enterprises of the sample: private joint stock companies "Mondelis Ukraine", "Lagoda Confectionery Factory", "Rivne confectionery factory", "Kharkiv biscuit factory". Key words: tax burden, tax return, normative tax rate, effective tax rate, food industry enterprises, factoranalysis, correlation analysis.

This paper has derived a simple tax-residence choice model to show the alternatives of each household residential choice between land price and land tax rate. The mathematical derivation indicates that people will move away from the CBD if its money income rises. The different land tax rates or tax burden among urban areas and/or rural areas will change household residential location, too. The higher the urban land tax rate is than the rural land tax rate, the more people will move away from the CBD if the differences in public services are insignificant everywhere. Conversely, if the tax burden or tax rates in rural areas are higher than in urban areas, people will move to the urban areas. The urbanization in Taiwanese urban areas seems closely related to this fiscal variable. In 1976, the nominal land tax rate in Taipei, for example, was 0.80%; but in the Yun-lin Hsien, the poorest jurisdiction, it was 9.29%. In this empirical study, we find that more than one-third of the migration in Taiwan can be explained by fiscal variables. People leave fiscal slums (rural Hsiens) to reside in fiscal havens (cities, municipal and industrial Hsiens). Urbanization has followed industrialization since the end of 1950s. Urban population has increased each year. Metropolitan areas have been formed. Jurisdiction has been consolidated under a shortage of housing space, public construction, water supply, and traffic congestion in these metropolitan areas. Taipei and its neighboring townships (Sanchung, Panchiau, Yungho, Chungho, Hsinchuang, and Hsintien), for example, are populous and have grown at a surprising rate with polluted air, traffic jams, and an ill-conditioned housing environment. Because a lot of migrants moving from the other rural areas cannot afford housing in Taipei, they agglomerate in the peripheral cities. Also, in the metropolitan area, land price and housing cost increase significantly. In particular, the assessed land tax value is less than half of its market value so a good deal of land is held for speculation with very high social costs (Galenson, 1979). In view of our theoretical model and the above situation, our policy implications suggest that the equalization of the land tax burden is very important in Taiwan and hence the critical progressive points of land tax should be equalized among jurisdictions. More specifically, we propose to impose the urban construction earmarked tax on urban land and urban housing as well as to reduce the agricultural land tax rate so as to abolish the big differences in the rural-urban land tax burden, which is shown in the Appendix. In practice, if the land tax payments are the decreasing function of the distance to the CBD and correspond to its market value everywhere, the price of land can be fully reflected by the quality and cost of the public services provided by the community where the land is located (Oates, 1969). Also, by doing so, the land tax rate will be equalized in the urban-rural spatial location, the Pareto-efficient frontier will be reached in equilibrium, and social cost can be reduced due to decreasing immigration into the urban areas.

The price of agricultural land and its value are of importance when forming the production potential of agricultural enterprises. The price of land marked an irregular development in the period 2006–2007 having increased in the majority of the EU states. The proportion of rent to the market price of land referred to as the capitalization rate kept varying within the range of 2–3%. The price of a site should, besides the land rent, also reflect the interest on the land rent received. The price of agricultural land with respect to the land rent manifests relatively important price inertia. This inertia in connection with a high growth rate of land rent results in the unrealistically high interest rate. Such situation is an evident advantage for land owners and is, on the contrary, a disadvantage for the tenants of the agricultural land. To make the interest rate realistic means especially stabilizing the land rent with low growth rates. These growth rates are different for different states. In general it can be maintained that the relative increase in land rent should not surpass 4%, exceptionally 6%.

<p>The economics of taxes and tax behaviour has generally been a focal point of tax literature and property tax literature has been no exception. A subset of property tax literature investigates the benefits of land value taxation and its revenue earning potential. Research has generally, focused on the potential and performance of land value taxation. However, the implications of this tax in developing countries have been ignored. Likewise, research into the relationship between the tax structure, its governance and tax payer behaviour has also been side-lined. Given the fact that land value taxation is regarded as the most efficient property tax but is only utilised in four countries and has been replaced by capital value taxation in several developed countries, is an indication that there are innate characteristics of the tax that affect its performance. Of equal importance, is the mechanism by which the tax operates.</p><p>Since 1957, Jamaica has been utilising land value taxation as its property tax and since its implementation, there has consistently been an issue of (relatively) low compliance rates. According to the current Minister of Local Government, Noel Arscott (2013) cited by McIntosh (2013), the payment of property taxes has been woefully inadequate. This view was supported by Matalon (2012) cited in Dunkley (2012) who described Jamaica’s property tax compliance rate as a “national disgrace.”</p><p>Given the island’s current economic structural reform programme with the International Monetary Fund (IMF) and the anticipated launch of the property tax reform programme in FY 2016/17, research on the property tax system is critical to improving compliance rates. As a result, this research will investigate how Jamaica’s property tax system shapes compliance by exploring the relationship between the structure of the system, its role in socialising the system’s actors and taxpayer behaviour. A taxpayer’s tax liability is a function of three things – the tax rate, land value and a person’s ability to pay. Thus, in order to understand the system, the relation between all three must be investigated. This paper therefore seeks to answer the following questions:</p><p>1.What are the implications of land value taxation for Jamaica and other developing countries?</p><p>2.What is the role of planning in land value taxation?</p><p>3.How does Jamaica’s tax system encourage or discourage property tax compliance?</p><p>4.To what extent is land value taxation regressive/progressive?</p>

Purpose The prices and rents of land depend on its marginal productivity and a number of other factors (the range of economic and policy-related factors). Significant changes in the European Union (EU) agricultural policy and changes in productivity models in recent years have influenced land market dynamics. To properly understand the dynamics in the land market and relate it to changes in agricultural production and policy, it is important to establish a multi-factor model that would allow the main factors determining changes in land rental prices in the EU to be assessed. Design/methodology/approach The article proposes an index decomposition analysis model to explain changes in land price at the country level. The logarithmic mean Divisia index is used for the decomposition of agricultural land prices into their key contributing factors. The proposed index decomposition analysis model is used with data from the Farm Accountancy Data Network. The empirical case of the EU countries over 2004–2022 is considered. The proposed approach allows one to measure the contributions of different factors towards changes in land rent based on the production theory. Findings The results indicate that growth in agricultural output per hectare appears to be the major cause behind changes in agricultural land rent. Increasing land productivity can be attributed to improved agricultural practices and the application of intermediate inputs. The price changes are also included in the analysis. During the period under review, land and rental prices and farm profitability indicators increased in most EU countries. Average growth in land rents in the EU-28 was around 2.2%, while land prices grew at 1.3%. The fastest growth in rental prices was recorded in Estonia, Lithuania, Latvia, Bulgaria and the Czech Republic (10.6–17.1%), while that for land prices was recorded in Bulgaria, Poland, the Czech Republic and Slovakia (10.4–26.2%). Land prices have also increased relative to the income generated by a land unit. This can be attributed to a €12/ha increase in the land rent price. Increasing agricultural subsidies have also played a stimulating role with respect to changes in agricultural land rent in the EU-28. However, this effect amounted to an increase in the agricultural land rent of just €7/ha. Originality/value The proposed approach allows one to isolate the effects of land rent price changes with respect to multiple factors. These factors explain land productivity, support rate and the situation in the land market. The proposed model can also be adjusted to explain dynamics in the land rent in other contexts.

Despite recent correctives to established views on the urban rather than suburban location of innovatory processes, we still know very little about the extent, drivers, and nature of concentrations of innovation in urban peripheries. This article makes several contributions. First, it presents an exploratory spatial data analysis method for identifying innovation centers in urban cores and peripheries from both geographical and functional perspectives. Second, we offer an initial, admittedly simple, econometric testing of some of the most critical drivers of innovation in urban peripheries. Third, we bring greater specificity to conjecture on the nature of innovation activities found in urban cores and peripheries, respectively. Drawing on an extensive time series data set of more than 7 million geocoded patents that were applied for by Chinese applicants between 2009 to 2018, we find that China’s urban peripheries have become more innovative overall, with an increasing number of cities that have developed at least one peripheral innovation center and a growing share of innovation activities in peripheral innovation centers. Governmental interventions, including the planning of polycentric spatial structures, the construction of development zones, high-speed railway stations, and college towns in urban peripheries, are shown to be key drivers underlying the emergence of peripheral innovation centers. Innovation in urban peripheries differs significantly from that in urban cores, being more specialized, less technologically complex, and more reliant on intercity technological collaboration.

Canada could be about to lose its tax competitive advantage it currently enjoys in attracting investment to its oil sector: its low corporate tax and royalty rates compared to the U.S. While we will start to know better the details of a U.S. tax reform package in the next month or so, two reform plans provide a basis to analyze potential impacts: the tax-reform “Blueprint” put forward last year by the Republican-controlled House of Representatives, and President Donald Trump’s own reform proposals. Either one, or even a hybrid version of the two, would make tax and royalty effective tax rates on new investment in the U.S. oil industry significantly more attractive to investors. Combined with the lack of any plans for a U.S. carbon tax and the lightening U.S. regulatory environment, investing in American oil might soon look more compelling than investing in Canadian oil. And when the price of oil eventually rises again, the attractiveness of Canada to international investors will diminish even more. As an investment destination, Canada’s popularity has already been fading. One key index, measuring foreign-direct-investment confidence, shows the U.S. at the top, while Canada has slid from third place to fifth place, behind even Britain, despite so much Brexit uncertainty. Amid Canada’s rising tax burden and its growing regulatory load, however, oil-producing provinces have nevertheless managed to retain a competitive advantage against oil-producing U.S. states in attracting international capital. That is primarily due to a lower corporate tax rate in Canada, as well as competitive royalty regimes and, in most oil-producing provinces, the absence of a retail sales tax on capital equipment. Alberta, for example, which currently offers the lowest marginal effective tax and royalty rate (METRR) on conventional oil investments of all the Canadian provinces based on a $50 per barrel West Texas Intermediate price, also offers a lower METRR than nearly all comparable U.S. states measured (except Pennsylvania). But if the Republicans succeed in passing a version of their tax-reform proposals — and as a major campaign promise, they are facing great pressure to do so — Alberta will slide quickly from one of the best North American destinations for oil investments to somewhere in the middle of the pack, and Saskatchewan will become one of the highesttaxed oil-producing jurisdictions. Should rising oil prices trigger higher royalty rates in both provinces, they will become even less competitive. Even though the House plan proposes a less drastic cut to corporate income tax rates, it will actually do more than the president’s proposed tax reforms to eliminate Canada’s competitive edge and put the two countries METRRs virtually on par, due to the immediate deduction of capital expenditures. While the prospect of the two countries ending up with roughly equal METRRs might sound less than worrisome, if it happens, Canada will lose the most significant advantages it has over the U.S. in attracting investment to its oil sector. The U.S. already enjoys the advantage of being a much larger market, and having a faster-growing economy, which is why it ranks as the most-preferred destination for foreign investment intentions. Investors also enjoy more regulatory certainty in the U.S., where the sector is being aggressively deregulated (as opposed to in Canada, where new and sometimes unexpected twists in the regulatory environment are becoming more common). And the U.S. still has no plans to implement a national carbon tax, while in Canada carbon taxes are expected to escalate over the next few years. With all these challenges to overcome, Canada's oil industry enjoyed one key edge to attract business - its lower tax burden, which soon it might lose as well.

Objectives: The study aims to identify the future value of land while showing the reality of future land prices in the city of Hit from the city center to its outskirts. Method: The research adopted the descriptive approach, which relies on studying the phenomenon as it exists in reality by paying attention to its accurate description, in addition to the systems approach (the inductive and analytical approach). Results: The area for residential use required for the year 2032 was estimated at approximately (467.43) hectares of the city’s area. The highest average value of residential land was expected in the Almuealimin Neighborhood, amounting to (966,000) thousand dinars per square meter. The lowest average value of residential land in the Al-Shuhadaa II, Al-Sorouh and Industrial neighborhoods was expected to reach (75,000) thousand dinars. The area for commercial use required for the year 2032 was estimated at approximately (20.6) hectares of the city’s area. The expected commercial land value reached its highest rate in Al- Chari Street (3,405,000) million dinars per square meter. The lowest rate was expected in the city's western entrance street (the Institute) to reach (843,000) thousand dinars. Conclusion: There are several factors that led to a significant change in the future value of land in the city of Hit. Commercial speculation is one of these factors, as there is a large variation in land prices in the city of Hit. Recommendations: Redistribution of commercial markets in residential neighborhoods is recommended. Increasing the functional efficiency of these markets in order to provide their services to the residents of the neighborhoods in which they are located. As well as to relieve pressure on the central business district and secondary commercial areas. So that there is a balance in land prices and rents between the neighborhoods of Hit City. Controlling city planning in a scientific and organized manner, and preventing violations of the basic plan and design. Commitment to the planned uses, and not allowing any use to exceed the other.

Les idées d’Henry George ont semblé être enterrées pendant plus d’un siècle. Sa principale idée était de financer un revenu de base au moyen d’une taxe prélevée uniquement sur la rente foncière. Après avoir montré que le retour du capital, tel que mis en avant par Thomas Piketty, peut plutôt s’interpréter comme un retour sur le devant de la scène de la rente foncière, nous construisons un modèle augmenté d’accumulation du capital à la Judd : les capitalistes possèdent de la terre qui est louée aux travailleurs pour qu’ils se logent, et en retour ceux-ci louent leur force de travail aux capitalistes. Nous montrons tout d’abord que la taxe sur le capital n’est pas une taxe de premier rang, puis qu’une taxe foncière ou une taxe d’habitation sont des taxes de premier rang qui permettent de financer un supplément de revenu aux travailleurs. En particulier, la taxe d’habitation est entièrement supportée par les propriétaires. Sa suppression devrait donc se traduire par une hausse des loyers. Si la terre urbaine est en quantité fixe, les loyers, y compris les loyers imputés, augmentent en proportion du revenu national pour une élasticité de la quantité de logement par rapport au loyer relativement inélastique (inférieure à 1) quand la population augmente. En conclusion, nous abordons le volet préconisations en matière fiscale auquel conduit ce type d’analyse, en évoquant la suppression de la taxe d’habitation, la création de l’impôt sur la fortune immobilière et la cotisation foncière des entreprises.

Tax Housing or Land? Distributional Effects of Property Taxation in Germany

Institute of University of I ' Business and California at I Economic Research Berkeley FISHER CENTER FOR REAL ESTATE AND URBAN ECONOMICS WORKING PAPER SERIES WORKING PAPER NO. 84-83 THE INTERJURISDICTIONAL EFFECTS OF GROWTH CONTROLS ON HOUSING PRICES L By These papers are preliminary in nature: their purpose is to - stimulate discussion and LAWRENCE KATZ comment. Therefore, they . KENNETH T_ ROSEN are not to be cited or quoted in any publication without the ex- press permission of the author. WALTER A. HAAS SCHOOL OF BUSINESS _