Land Tax Research Articles

Rental Housing Supply and Build-to-Rent Conundrum in Australia

Traditionally, rental housing has been supplied by a large pool of individual investors who own a few units and invest their savings, with some leverage, to take advantage of the tax regime in Australia. The last five years have seen the emergence of build-to-rent (BTR) units, which are supplied by investors who own a large number of units. The state of Victoria in Australia has the largest share of these projects. In the current market and regulatory environment, the financial viability of BTR projects is low for investors and hinges on the ability of units to be leased at higher than market rents. This paper examines four groups of levers, including those already being pursued by the building industry, that can be used to improve the financial viability of BTRs. These include: (i) revenue maximization, (ii) cost reduction (iii) fiscal and (iv) planning incentives. An archetypical BTR project which mimics current practice is considered, assumed to be in Docklands, Victoria, where several BTR projects are planned. For the robustness check, a feasibility analysis is conducted for a site in North Melbourne, a neighbourhood in Victoria with several BTR projects. The results indicate that for revenue maximization, the mix of unit types in a BTR project should be location-specific, as market preferences (and the characteristics of renters) determine the rent for different types of units that can be achieved. In a conventional BTR project development, where land is bought upfront and the project is developed, the mixed-use BTR (residential in combination with commercial) does not provide significant financial benefits though including small retail (3–4% of the net lettable area) may provide complementary benefits. Incurring large capital costs upfront and having the revenue stream spread over long periods reduces financial viability. While construction costs are more difficult to reduce, ways to reduce land costs could be through zoning land for BTR use, through mechanisms such as joint ventures with landowners, and land leasing. Exemptions on income, land tax, and rates (like CHPs) can result in a higher return for investors. A full GST refund, an incentive that industry is lobbying for, results in a similar IRR as an exemption on income, land tax and rates would offer. These results will assist in determining priorities for policies that are aimed at BTR.

Land Rental Transactions in Ethiopian Peri-Urban Areas: Sex and Other Factors for Land Rent Transactions

The continuous reduction in peri-urban agricultural land due to spatial urban expansion forces subsistence farmers to seek arable land through different land access strategies. Among these, land rental transactions are crucial for accessing arable land across different regions. This study aimed to examine factors affecting land rental transactions in the peri-urban areas of the East Gojjam Administrative Zone in Ethiopia. Data were collected from 353 household heads of peri-urban areas, who were affected by expropriation. A total of 350 valid responses were analyzed using descriptive and inferential statistics and an econometrics model. The results indicated that 58% of the respondents participated in both renting and renting out land, which underlines the importance of land rental transactions in the peri-urban areas. Specifically, 60% of female-headed households were engaged in land rental transactions, with 14% renting in and 46% renting out land. In contrast, 38% of the male-headed respondents rented land, while only 19% rented out land. The model result identified sex, landholding size, number of oxen, participation in off-farm activities, and extension service as significant determinant variables for renting land. Households made land rental agreements both orally and in written documents, with oral agreements being more prevalent. Transaction dues were conducted through sharecropping and fixed rents, with sharecropping being the most common method. Thus, land rental transactions play pivotal roles to support the livelihoods of peri-urban subsistence farmers.

Understanding Spatial Agglomeration: Increasing Returns, Land, and Transportation Costs

Economic activities are concentrated on a small share of inhabitable land. In our view, this agglomeration is the outcome of a trade-off between increasing returns and transportation costs, which capitalizes into land rents. Our second baseline idea is that Tiebout-like sorting provides a general framework to handle a large array of problems in spatial economics. Cities have high housing prices because they are productive and offer high levels of amenities and public goods. Both production and amenity effects capitalize in the land rent at a particular location. Through the process of bidding for land, spatial sorting is the involuntary consequence of a myriad of individual decisions made by agents who pursue their own interests.

Sistem Sewa Lahan Pertanian Masyarakat Pedesaan dalam Perspektif Ekonomi

This study aims to analyze the system of agricultural land leases carried out by landowners in rural Ngronggot Nganjuk District with qualitative research methods. The results of this study found that the land leasing system is called the Ngronggot Village community of Nganjuk Regency as the "Annual Adol". In the "Annual Adol" system, there are three stages of agreement found, namely: Pre agreement, Agreement, and after agreement. In an economic perspective the phenomenon of agricultural land rent is carried out by landowners against the backdrop of economic rationality which provides a higher opportunity cost when deciding to lease land compared to working on agricultural land itself mainly related to the risk of crop failure and the amount of harvest produced is lower than the cost his farming business. Whereas for land tenants the economic rationality underlying is that the greater the mastery of the cultivated agricultural land, the greater economic benefits received by the land tenant.

Participation in land rental and labor markets and agricultural economic performance of banana farmers in China

The emerging marketization of agricultural factors allows farmers to expand agricultural production by renting in farmland from land rental market or purchasing services through labor market. Farmers’ transactions in the two markets can stimulate the agricultural transformation in developing countries, but may increase their financial burden in agriculture. Based on the primary data collected from banana farmers in China, this study attempts to clarify farmers categories based on their different choices regarding participation in land rental and labor markets for agricultural production, analyze the determinants of farmers’ simultaneous participation in the two markets, and explore heterogenous effects of farmers’ market participation on agricultural economic performances using the multinomial endogenous switching treatment regression model. The results show that farmer’s tie to retailers is highlighted as an important driving force behind farmers’ simultaneous participation in the two markets, while their participation choices are also varying due to different household head characteristics and family resource endowments. Farmers who participated in the two markets significantly reduce the cost of material input in agricultural production, but the total production cost of participants is higher than that of non-participants due to the high rent of land resource and cost of hired labor for production services. Interestingly, farmers’ participation in land rental market increases the yield of their farms, while participation in labor market has a negative impact on the yield. Farmers’ participation in both land rental and labor markets can significantly increase farm net income by nearly 67 %. In contrast, participation in labor market decreased farm net income by 22 %, whilst participation in land rental market increased farm net income by 186 %, though without statistical significance. The findings underscore the important role of land rental markets in boosting farm economic performance. Policymakers can facilitate land transfer among smallholder farmers in the land rental market and promote agricultural technologies to substitute labor force so as to reduce the adverse effect of labor market, thereby improving agricultural economic performances in developing regions.

The Tax State: An Outdated Concept

Taxes are compulsory levies for no consideration. Because there is no earmarking, the budget funds are often not spent effectively by the state authorities. In economic terms, the incentive effects of taxes and deadweight losses are counterproductive. The alternative would be state financing that is primarily based on performance and consideration (equivalence). A key component of this would be marginal cost-oriented charges. A second element would be the financing of provisioning costs of public infrastructure from land rents. This would largely avoid the problems of tax financing. States and public companies can be observed that are already successfully moving in this direction.

The Political Economy of Lauchlin Currie's Land Tax Policy in Wartime China

Abstract This article examines Lauchlin Currie's land tax policy suggestion during wartime China and its political economy. Our study, based on unpublished archival materials, aims to clarify the reasons for and outcomes of Currie's first visit to China in 1942. It is argued that Currie, acting as a sincere adviser, based his policy recommendation on extensive surveys of the political and economic conditions of wartime China. In his efforts to persuade the Chinese leader Chiang Kai-shek to implement financial reform, Currie drew on the authority of Sun Yat-sen's economic thought and the leadership analogies of Franklin Roosevelt and New Deal policies.

Extinction of the Cause for Reduction and Exemption of Land Value Tax and Its Attribution of Responsibilities: An Analysis of High Administrative Litigation Division of Taipei High Administrative Court Judgment (112) Su Tze No. 14

Extinction of the Cause for Reduction and Exemption of Land Value Tax and Its Attribution of Responsibilities: An Analysis of High Administrative Litigation Division of Taipei High Administrative Court Judgment (112) Su Tze No. 14

Issues in the Practice of Land Taxation in Delta State, Nigeria

Issues in the Practice of Land Taxation in Delta State, Nigeria

Analysis of Land Tax in The Plantation Sector Viewed from Islamic Economic Leaders

This research is concerned with how land and building taxes affect the plantation sector in Indonesia by following one of the economic thought leaders Abu Yusuf in achieving justice. The researchers applied literature research or content analysis. Land and Building Tax for the Plantation Sector in Indonesia is seen from the point of view of Abu Yusuf because the idea will create justice for taxpayers, even though the tax must be paid 0.5% based on the Sales Value of the Tax Object (NJOP). The muqasamah system presented by Abu Yusuf pays more attention to details, starting from the type of land, soil fertility, irrigation, seasons, and price fluctuations at harvest, to ensure fairness in tax collection. If the muqasamah system is implemented in Indonesia, which has the character of an agrarian country, then state revenue from the plantation sector tax will have great potential. The concept put forward by Abu Yusuf is still very relevant to Indonesia, particularly in land and building taxes in the plantation sector. Therefore, the concept of Abu Yusuf can be considered by the Indonesian government in establishing policies related to land and building taxes in the plantation sector nationally

Environmental Impact of Agricultural Land Transfer in China: A Systematic Review on Sustainability

Farmland holding fragmentation facilitates more extensive use of agricultural chemicals, which harm the natural environment. Agricultural land transfer in China aims to consolidate agricultural holdings, promoting economies of scale and addressing socio-economic and environmental concerns. This systematic review aims to examine the impact of agricultural land transfer on the environment. The review evaluates 60 empirical research articles retrieved through the Web of Science and SCOPUS databases, which discuss the relationship between agricultural land transfer and the environment. The findings indicate that agricultural land transfer has both positive and negative impacts on the environment. Farmers who engage in land rental and adopt sustainable agricultural practices, including the utilization of organic fertilizers, implementation of conservation measures, and application of efficient carbon reduction techniques, have demonstrated a notable positive influence on the environment. The lack of regulatory mechanisms concerning agricultural land transfer, including non-adjacent agricultural land transfer and large-scale farmers’ improper chemical utilization, causes significant negative environmental consequences such as biodiversity loss and ecosystem destruction. As such, we recommend innovative institutional developments addressing spatial and temporal considerations, land use, market systems, and household conditions to reconcile the links between agricultural land transfer policy and environmental outcomes. We urge continued research into the multidimensional and potential effects of agricultural land transfer to facilitate better-informed policy-making.

A Critical Analysis of the Standard Urban Model in the Context of Greater Manchester

This study critically examines the applicability of the Standard Urban Model (SUM) in the context of Greater Manchester, utilizing empirical data and spatial analysis to explore its operational limitations and potentials. Originally conceptualized by William Alonso, the SUM provides a theoretical framework to understand intra-urban economic dynamics predicated on a monocentric city structure. Through a comprehensive dataset encompassing census demographics, housing prices, and GIS-mapped land-use patterns from 2015, this paper investigates the models ability to predict and describe urban land rent gradients and residential distribution relative to the citys Central Business District (CBD). The findings indicate that while the SUM may provide a generalized view of urban structure, it significantly underestimates the socio-economic diversities, technological advancements, and cultural influences that are inherent in urban development. Particularly, the analysis reveals that rental price declines with distance from the CBD are not as pronounced as predicted by the SUM, with a low coefficient of determination (R=0.2551). Furthermore, the study highlights how urban development in Manchester deviates from the monocentric model due to historical shifts, regeneration efforts, and the emergence of multi-centric hubs. This research underscores the necessity for adapting urban economic models to reflect the complexities and dynamic nature of modern cities, suggesting a shift towards more nuanced and flexible frameworks that accommodate the multifaceted influences on urban landscapes.

Impact of tax policy on the development of agrarian enterprises and organisations

The purpose of this study was to analyse the role of tax policy in the agricultural sector to determine its impact on innovative development, investment decisions, and competitiveness of enterprises in this area. The study performed a comparative analysis of various aspects of tax regulation, review of taxation instruments, consideration of special tax regimes in such countries as the USA, Germany, France, Spain, Poland, and Kyrgyzstan. The study investigated various aspects of tax regulation that have direct and indirect impact on the functioning of the agricultural sector. The role of tax policy in stimulating investment and development in agriculture by providing tax incentives and subsidies for investment in innovative technologies, process mechanisation, and research was examined. Special tax regimes aimed at supporting agricultural enterprises were analysed, and examples of tax policies in different countries, including the USA, the European Union, China, India, and Kyrgyzstan, were provided. The state of agricultural development in Kyrgyzstan was reviewed, and the main challenges, government support measures, and the main land tax rates across the country were identified. The key point was to develop recommendations for improving the tax system to stimulate agricultural development derived from the synthesis method. This involves the introduction of tax exemptions and investment incentives, differentiation of tax rates depending on segments and regions of agriculture, stakeholder consultations, simplification of tax administration, and attraction of foreign investment through special tax regimes. Concrete examples were also given of large agricultural enterprises in different countries where improved tax policies can contribute to the development and efficiency of their operations

Economic impacts of an urban gully are driven by land degradation

AbstractThis study carries out the first evaluation of the impacts of ravines and gullies in urban areas in Brazil considering environmental damage, such as costs related to land restoration and erosion control, infrastructure destruction, economic losses and income losses related to property and urban land taxes. In this study, the city of Bauru, Brazil, has been selected as study site, where three areas were chosen due to the large impact that ravines and gullies have caused over the past two decades. Our analysis indicates that the total damage exceeds US$ 173 million and is mainly related to land degradation. The cost of replacing the eroded soil in these three areas is estimated at approximately US$ 13.3 million. Furthermore, according to our analysis, urban areas affected by ravines and gullies represent problems similar to brownfields. The assessment of the impacts and challenges associated with urban ravines and gullies can help promote accountability by those responsible for their initiation and may contribute to decreasing the development of new eroded areas.

The Levy System in East Bengal and its Impact on the Peasantry (1949-1967)

The peasants of Bengal have been living through exploitation since ancient times. The intensity of exploitation of farmers increased manifold from the ancient period to the colonial period. The main reason for this was that on the one hand, the land tax or rent paid to the state during the pre-British period was increased many times and on the other hand, apart from rent, many kinds of abwabs were levied on the peasants. During the British era, the farmers thought that this exploitation and deprivation would end if the country became independent. But after the departure of the British in 1947, in the independent state of Pakistan, the farmers of East Bengal were subjected to exploitation and oppression as in the colonial period. During the Pakistan period, like the British period, the taxes and abwabs paid to the state were increased. Moreover, the levy system, a unique type of agricultural land tax that was assessed based on the total production of the farmer's total land, was introduced by the Muslim League government. As a result, the level of exploitation and oppression of the farmers of East Bengal increased manifold during the Pakistan period. Based on primary and secondary sources, this paper attempts to provide a comprehensive understanding of the introduction of the levy system and investigate its impact on the farmers. The paper will also shed light on the reactions of politicians and peasants to this newly introduced levy system in East Bengal during the Pakistan period. Journal of the Asiatic Society of Bangladesh (Hum.), Vol. 69(1), 2024, pp. 107-121

Modeling the Cadastral Value of Land Plots of Gardening and Horticultural Non-Profit Partnerships Taking into Account the Influence of Local Factors of the Territory

Concerning the dependence of land taxation on the cadastral or market value of lands in developed and developing countries, the role of land resources in the system of socio-economic development is quite high. World studies show the presence of methodological problems related, among other things, to the composition of price-forming factors of mass assessment. In relation to garden and vegetable garden lands, the issue of taking into account factors related to the immediate environment and soil quality is especially relevant, which is associated with the social justice of land taxation. The current paper aims to determine the influence of factors of the immediate environment and soil fertility on the cadastral value of the lands under consideration by determining which methodological apparatus has been built. Modeling of the specific indicator of cadastral value (SICV) of land plots is performed on the example of five gardening and vegetable gardening partnerships of the Belgorod district, where 79% of the territory is occupied by agricultural lands, which are quite diverse in soil composition, relief, and other studied factors. A linear model of dependence between local factors and the UPCS is proved. The reliability of the model is confirmed by testing for homoscedasticity, autocorrelation, and statistical significance of factors. The results of determining the cadastral value demonstrated an average change of 10%.

Explaining the emergence of land-use frontiers.

Land-use expansion is linked to major sustainability concerns including climate change, food security and biodiversity loss. This expansion is largely concentrated in so-called 'frontiers', defined here as places experiencing marked transformations owing to rapid resource exploitation. Understanding the mechanisms shaping these frontiers is crucial for sustainability. Previous work focused mainly on explaining how active frontiers advance, in particular, into tropical forests. Comparatively, our understanding of how frontiers emerge in territories considered marginal in terms of agricultural productivity and global market integration remains weak. We synthesize conceptual tools explaining resource and land-use frontiers, including theories of land rent and agglomeration economies, of frontiers as successive waves, spaces of territorialization, friction and opportunities, anticipation and expectation. We then propose a new theory of frontier emergence, which identifies exogenous pushes, legacies of past waves and actors' anticipations as key mechanisms by which frontiers emerge. Processes of differential rent creation and capture and the built-up of agglomeration economies then constitute key mechanisms sustaining active frontiers. Finally, we discuss five implications for the governance of frontiers for sustainability. Our theory focuses on agriculture and deforestation frontiers in the tropics but can be inspirational for other frontier processes including for extractive resources, such as minerals.

The right of re-measurement of settlements in the Middle Ages in the light of the legal practice of Bohemia and Silesia in the 13th and 14th centuries

Summary During the High Middle Ages, hereditary land tenure prevailed throughout East-Central Europe, often in a formalised manner based upon the ius emphyteuticum, whereby peasants were guaranteed a stable amount of land rents to be paid to landlords. There was, however, a legal institution that enabled the landlords to practically renegotiate original settlement contracts without openly violating them, in order to increase their income: the law of re-measurement of settlements (ius mensurationis). On examples from Silesia and Bohemia we have demonstrated that the landlords used this means plentifully, either directly through its actual implementation, or indirectly by renouncing their claims for payment. We have also hypothesized on the rationale and origin of the ius mensurationis, analyzed who could raise claims based upon it, and commented on the formulas related to this legal institution, which may be found there in Silesian and Bohemian charters.

APPLICATION OF A DEFINITE INTEGRAL CALCULUS IN RENT CALCULATION

For land rent, it is characteristic that it arises as a consequence of capital investment in the purchase of land, which is not a production investment, because capital is not invested for the reason of organizing agricultural production, the main reason of investing capital is to acquire certain ownership of land areas. In this paper, we will present the possibility of solving the problem of rent calculations using the economic application of the definite integral. First, we will show if the integral calcusus is applied in the rent calculation and then in the domain of its calculation.

Those with constant property rights have perseverance: China’s land tenure reform promotes environment-friendly farming practices

Few studies have used large-scale household-level panel data to quantify the impact of land tenure reform on environment-friendly farming practices from a chemical fertiliser reduction perspective. This study attempts to fill this gap by exploring the relationship between land certification and farmers’ chemical fertiliser use. It employs nationally representative panel data from the Chinese Family Database and a propensity score matching and difference-in-difference approach. The results show that land certification significantly reduces the usage of chemical fertilisers, mainly by increasing long-term investment, promoting land renting, and inhibiting off-farm employment. This effect varies greatly between farmers with and without land certification experience before the new round of land certification, although no significant difference exists based on whether farmers have previous land adjustment experience. Furthermore, land certification also helps increase the probability of straw recycling and farm manure use. Accordingly, developing countries can combine land tenure reform with environment-friendly farming practices. Through large-scale land certification reforms, and the continuous enhancement of land tenure security, a solid foundation for a land tenure system for sustainable agricultural development can be established.