Personal Property Tax Research Articles

Compliance and assessment outcomes in the personal property tax

AbstractPersonal property taxpayers must decide the sort and quality of property information to report to assessors. Differences in the extent of compliance across personal property owners may result in assessors over‐ or underassessing noncompliers relative to compliers, which has policy implications for assessment equity and noncompliance penalties. Using nonparametric matching on a panel of restaurants from Dallas County, Texas from 2008 through 2022, I find consistent evidence that noncompliers are underassessed relative to compliers. Results suggest that Texas's statutory penalty rate for noncompliance should be almost twice as much for the rational property owner to be indifferent to compliance.

Review Paper- “FINANCIAL ASPECT’S RELATED TO GST & TAX PROCEDURE IN SANTOSH BAKSHETTI’S CONSULTING FIRM”

While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assesses themselves. On the other hand, indirect taxes are levied on the sale and provision of goods and services respectively and the burden to collect and deposit taxes is on the sellers instead of the assesses directly. The GST Act came into existence, leading to the realization of “One country, one tax”. It is a centralized tax- paying network which simplifies payment of tax by the citizens as well as revenue collection by the government. It widens the tax base. Introduction of GST aims to alleviate, though not all, many of the problems leading to efficiency in operations for individuals leading to economic growth of the country. A direct tax is a tax that a person or organization pays directly to the entity that imposed it. An individual taxpayer, for example, pays direct taxes to the government for various purposes, including income tax, real property tax, personal property tax, or taxes on assets. An Income Tax Return (ITR) is a document you file with the Internal Revenue Service or the state tax board reporting your income, profits and losses of your business and other deductions as well as details about your tax refund or tax liability. Taxable income is the portion of a person's or company's gross income that the government deems subject to taxes. The computation of taxable income is done adding all the incomes that an individual can get (Income from salary, house property, capital gains, business/profession and other sources) and subtracting the deductions from it will give us the net taxable income. Keywords – TAXATION, GST, DIRECT TAXES, INDIRECT TAX, TAX COMPLIANCE, CAPITAL GAINS

Priorities for Strengthening Key Revenue Sources in Asia

This paper discusses the evolution of key taxes during the past 20 years in developing Asia and the fiscal challenges that the region’s economies face in light of the coronavirus disease (COVID-19) pandemic. It presents estimates of tax capacity and tax potential, and discusses the productivity of key taxes in the region. The paper finds that developing Asia has the potential to raise more revenues–reaching up to 4% of gross domestic product on average. While corporate income tax productivity is high vis-à-vis other regions, the same does not apply to personal income tax or value-added tax. There is potential in many economies to raise more revenues by improving the compliance and design of the value-added tax. It is also important to ensure that tax systems in developing Asia become more progressive with the expansion of personal income and property taxes. Increased allocations and better targeting of social spending would help offset some of the regressivity stemming from indirect taxes. An important source of revenue leakage is tax expenditures granted by economies in the region.

Tax policy and economic growth: Evidence from Ghana

The government of Ghana implemented an Economic Recovery Program (ERP) in 1983, aimed at the restoration of fiscal discipline towards increasing revenue and promoting economic growth. In spite of the fiscal reforms’ growth in tax, revenue continues to lag behind that of government expenditure and compares poorly with revenue performance in other parts of the world. Economic growth in the country also settled around 5 per cent level for two decades after the introduction of the fiscal reforms. This paper examined the effect of tax policy measures on economic growth and explored the tax revenue threshold that optimizes economic growth using time series data for the period 1970 - 2020. The data sets involve GDP per capita, stock of human capital, physical capital, growth rate of working population, and six (6) tax indicators namely: import duty, excise tax, company tax, personal income tax, income and property tax, and value added tax. The results of the unit root test reveal that all the variables are stationary at levels and first difference. The bounds test signals the existence of long run relationship among the variables at 1 per cent level of significance. Employing the Autoregressive Distributed- Lag technique, the findings suggested that economic growth benefits from increases in import taxes and company taxes more than the other types of taxes both in the short and long run. However, increases in the share of value added taxes and personal income taxes were found to have deleterious effect on economic growth in Ghana. A threshold level of 14.48 per cent of tax revenue - GDP ratio was found to be optimal level of taxes that impact economic growth. The study recommends that broadening, nurturing and sustaining tax base should be the utmost target of policy to ensure significant increase in the total government revenue to promote economic growth.

Reforming the Tax on the Property of Individuals

The article examines the historical aspects of taxation of the property of individuals in the Soviet Union and the Russian Federation. The issues of determining the object of taxation and its assessment are considered. At all times, immovable property belongs to the object of taxation. This object is almost impossible to hide and evade tax. Property tax has always been calculated based on its value. The procedure for determining the value changed as well as the list of objects subject to tax. It is noted that the tax on the property of individuals has a great impact on the relationship between the tax payer and the state, when making any changes that increase the amount of payment, it is necessary to take into account the interests of not only the state, but also citizens who pay taxes. If there is an object of taxation, the payment of tax does not depend on the availability of the source of payment. The analysis of personal property tax receipts in the Russian Federation and the Irkutsk region was carried out. Based on the analysis, the conclusion is formulated that the tax on the property of individuals is not particularly important in the formation of municipal budget revenues at the present time. According to this tax, there is a large list of benefits that exempt from paying tax in full or reduce the amount of tax. When establishing the procedure for calculating taxes and tax benefits, it is proposed to take into account the location and destination of property owned by individuals.

Comparing forms of neighborhood instability as predictors of violence in Richmond, VA.

Violence events tend to cluster together geospatially. Various features of communities and their residents have been highlighted as explanations for such clustering in the literature. One reliable correlate of violence is neighborhood instability. Research on neighborhood instability indicates that such instability can be measured as property tax delinquency, yet no known work has contrasted external and internal sources of instability in predicting neighborhood violence. To this end we collected data on violence events, company and personal property tax delinquency, population density, race, income, food stamps, and alcohol outlets for each of Richmond, Virginia’s 148 neighborhoods. We constructed and compared ordinary least-squares (OLS) to geographically weighted regression (GWR) models before constructing a final algorithm-selected GWR model. Our results indicated that the tax delinquency of company-owned properties (e.g., rental homes, apartments) was the only variable in our model (R2 = 0.62) that was associated with violence in all but four Richmond neighborhoods. We replicated this analysis using violence data from a later point in time which yielded largely identical results. These findings indicate that external sources of neighborhood instability may be more important to predicting violence than internal sources. Our results further provide support for social disorganization theory and point to opportunities to expand this framework.

Taxes and payments paid by individuals, the impact on their financial situation

In accordance with the current tax legislation, on an equal footing with organisations and individual entrepreneurs, individuals who do not have income from business pay taxes on income from labor activities in organisations and taxes on property they own: transport, land, and personal property tax, as well as other non-tax payments (housing and communal services, etc.). The article analyses the role and importance of taxes paid by individuals in the budgets of various levels, non-tax mandatory payments, their impact on the financial situation of individuals. The relevance of the study is due to the fact that the payment of taxes and mandatory payments worsen the financial situation of taxpayers – individuals, and the fight against poverty has been declared a priority task of the state and local authorities. The study found that individuals, including non-working pensioners, bear a significant financial burden, which is caused, among other things, by the inability to shift the responsibility for paying taxes to someone, and therefore the number of people whose incomes are less than the subsistence level does not decrease, differentiation of the population does not decrease in terms of income. Recommendations on compensatory instruments to increase the income of the population are made.

THEORETICAL LOGOS OF FISCAL DECENTRALIZATION IN THE CONDITIONS OF PERMANENT TRANSFORMATION OF INTERBUDGETARY RELATIONS

The article examines the essential determinants of decentralization and its main elements. Considerable attention is paid to scientific and theoretical aspects of the impact of fiscal decentralization on local economic development. Priority aspects of realization of bases of fiscal decentralization in the Ukrainian administrative practice are covered. It is proved that the key idea of ​​fiscal decentralization is manifested in the achievement of financial autonomy by local governments through the accumulation of financial resources at a certain level of government. Emphasis is placed on the concept of fiscal federalism and its role in the socio-economic development of administrative entities of unitary states.
 It is argued that the construction of an effective system of inter-budgetary relations should take into account a range of measures to strengthen the own tax potential of the territorial community. It has been established that recently the tax potential of local self-government bodies has been identified by tax capacity at the expense of three taxes: personal income tax, property tax and single tax. The study showed that fiscal decentralization through the prism of tax, budget and debt instruments can provide a favorable socio-economic climate in local communities.
 A structural and logical scheme of the impact of key paradigms of fiscal decentralization on the development of united territorial communities in Ukraine has been built. It is proved that fiscal decentralization in the conditions of divergence of interbudgetary relations can become a catalyst for effective fiscal stimulus policy, as delegation of budgetary powers to lower levels, while improving the efficiency of budgetary resources, will allow more fully and regionally respond to regional development and local needs.

How the 2020 pandemic affected tax revenues in Russian regions?

Research background: The 2020 pandemic has proven to be stressful for regional tax systems. However, these systems reacted differently to lockdown and a decline in business activity, which was associated with both their structures and the specifics of their development.
 Purpose of the article: The aim of the article is to assess the impact of the 2020 pandemic on tax revenues of Russian regions, as well as to analyze the factors contributing to the resilience of regional tax systems to epidemiological crises.
 Methods: The study is based on monthly data from the Federal Tax Service of the Russian Federation on total tax revenues in 83 Russian regions for 2013?2020. For data up to March 2020, we construct stationary time series and plotted ARiMA regressions. Based on them, we forecast tax revenues for the period from April to December 2020, if there were no pandemic. The impact of the pandemic is calculated as the deviation of actual tax revenue from the forecast for the corresponding 9 months.
 Findings & value added: We find that the impact of the pandemic on tax revenues varies over time and space. The crisis hit the fiscal system most negatively in the first three full months of the lockdown (April?June 2020). Some mining regions of the Urals, Western and Eastern Siberia, specializing in the extraction of oil and gas, as well as non-ferrous metals, turned out to be the most vulnerable to the pandemic. The most resistant to it are the central and southern regions of the European part of Russia. Calculation of Pearson's correlations shows that the greatest drop in tax revenues occur in regions with a larger share of the mining industry in gross value added and MET in tax revenues, with a higher GRP per capita and an increased level of general economic instability. The smallest decline in tax revenue, or even its growth, is observed in regions with a larger share of personal income tax and property tax in tax revenues, a higher share of trade and processing industries, social sphere and public administration in gross value added, a higher degree of economic diversification and a larger share of small business in total turnover. The obtained results are applicable to manage the resilience of tax systems to epidemiological crises.

Primena dinamičkih modela u procenjivanju odnosa između direktnih poreza i investicija u OECD zemljama

The article researches the direct tax effect on investment share in thirty-five OECD countries for the period from 1996 to 2016 year. The goal of this research is to determine how direct taxes influence on investment level measured by the share in the gross domestic product. The empirical analysis enables the implementation of fundamental econometric procedures as well as different dynamic panel models in order to measure effect of direct taxes. Results of Hausman show that PMG model is appropriate for measuring the effect of tax revenue growth, personal income tax, corporate income tax and property tax on investment share in selected countries. The model results reflect significant effect of tax revenue growth, personal income tax and property tax in the long term, while corporate tax is not significant for investment share in OECD countries. However, direct taxes do not have significant impact on investment share in the short-term, except tax revenue growth has positive effect on the investment in observed period.

Фискальная роль налога на имущество физических лиц

Цель работы – выявить текущую роль имущественных налогов в формировании бюджетных доходов территорий Российской Федерации. Основные элементы рассматриваемых налогов изучены с применением метода наблюдения и сбора фактов. Рассматриваются факторы, влияющие на фискальную значимость изучаемого налога, анализируется динамика его элементов. Рассматриваются перспективы изменения исчисления и взимания налога, а также возможные варианты влияния элементов налога и других факторов на его фискальную значимость. Делается вывод о низкой фискальной роли налога и практическом отсутствии возможностей влияния на фискальную значимость органов местного самоуправления в рамках полномочий, определенных Налоговым кодексом РФ при установлении и введении в действие данного налога на территории муниципального образования. The purpose of the work is to identify the current role of property taxes in the formation of budget revenues territories of the Russian Federation. The main elements of the taxes under consideration were studied using the method of observation and collecting facts.The factors influencing the fiscal significance of the tax under study are considered, and the dynamics of its elements is analyzed. The prospects for changes in the calculation and collection of tax, as well as possible options for the impact of tax elements and other factors on its fiscal significance are considered. The conclusion is made about the low fiscal role of the tax and the practical lack of opportunities to influence the fiscal significance of local governments within the powers defined by the Tax code of the Russian Federation when establishing and implementing this tax on the territory of a municipality.

Cryptocurrency and blockchain: sphere of application in tax field of the Russian Federation

This article is dedicated to the question of taxation and tax management of a number of operation in digital environment, namely related to the use of cryptocurrency. Special attention is paid to blockchain technologies as a promising tool for improvement of tax management and automation of business processes. The relevance of this work on the one hand is substantiated by the increasing trade volume on the digital markets hand, while on the other – weak foundation, insufficient technical capabilities of tax management of such operations and univerdsally accepted approaches. The results of research can be used by the Ministry of Finances and Government of the Russian federation in development of strategies for improvement of tax policy. The author determines the global trends of recognition/non-recognition of cryptocurrency as a specific type of property, assets of payment method. A brief overview of foreign approaches towards tax regulation of cryptocurrency is presented. The author systematizes the Russian legislative framework on taxation of digital currency, describes the evolution of national approaches to fiscal regulation in this area. A formulation of modern interpretation of cryptocurrency as the object of taxation by different types of taxes (corporate tax, value-added tax, corporate property tax, personal property tax) is provided. The author determines the possibilities for development of tax management with the use of blockchain technologies, as well as forecasts main consequences of such transformations for businesses and the state.

Features of Legal Regulation of Tax Revenues of Budgets of Federal Cities (Case Study of the City of Moscow)

The paper examines the powers of federal cities to establish and implement regional taxes that constitute a part of the tax system of the Russian Federation. The author comes to the conclusion that the jurisdiction of federal cities in the field of taxes is attributed to the joint jurisdiction of the Russian Federation and the constituent entity of the Russian Federation, namely, the federal city. Changes in legislation have a significant impact on the structure of revenues of Moscow budget due to the emergence of new fiscal revenue sources of federal cities, increase the amount of revenues received from the property tax of organizations in connection with the expansion of the list of real estate objects in respect of which the tax base is defined as their cadastral cost, etc. At the same time, the corporate tax, personal income tax and property tax invariably remain the main sources of tax revenues of the city of Moscow.

Toward a Comprehensive Tax Reform for Italy

This paper evaluates elements of a comprehensive reform of the Italian tax system. Reform options are guided by the principles of reducing complexity, broadening the tax base, and lowering marginal tax rates, especially the tax burden on labor income. The revenue and distributional implications of personal income and property tax reforms are assessed with EUROMOD, while a microsimulation model is developed to evaluate VAT reform options. Simulations suggest that a substantial reduction in the tax burden on labor income can be obtained with a revenue-neutral base-broadening reform that streamlines tax expenditures and updates the property valuation system. In addition, a comprehensive reform would benefit low- and middle-income households the most, by lowering significantly their overall current tax liability, which results in increased progressivity of the tax system.

ОБ ИСПОЛНЕНИИ БЮДЖЕТА РЕСПУБЛИКИ БАШКОРТОСТАН В УСЛОВИЯХ ПАНДЕМИИ

The article addresses the issues of budget execution in Republic of Bashkortostan during pandemic. Authors analyze the planned values of tax and non-tax revenues in the budget of Republic of Bashkortostan for 2020. In the structure of tax and non-tax revenues of the republic’s budget, the largest share is occupied by 4 types of taxes and fees (corporate profit tax, personal income tax, excise taxes and property tax). Therefore, the fulfillment of the region's social obligations to the residents will largely depend on the volume of receipts of these four types of tax. Authors analyzed the budget execution in terms of expenditures in the context of state programs approved for 2020. The unfavorable economic situation due to the pandemic has affected the economies of all countries of the world. The pandemic will negatively affect the budget execution in terms of revenues both at the federal and regional levels. It is already clear that by the end of 2020 the republic will lack a significant amount of tax and non-tax revenues. In the course of the analysis, the authors revealed four main socially oriented state programs – «Social protection of the population of Republic of Bashkortostan», «The development of education of Republic of Bashkortostan», «The development of healthcare of the Republic of Bashkortostan», «The development of culture and art in the republic of Bashkortostan» - account for more than half of all budget expenditures – or 59.7 %, thus confirming the social orientation of the budget of the Republic of Bashkortostan. At the end of the article, authors propose measures for going through a difficult economic period with minimal losses. First, it is necessary: to refocus budget expenditures, to determine priorities in spending budget funds; to strengthen control over the efficiency and effectiveness of the budgetary funds usage; take measures to ensure maximum job retention and reduce unemployment.

The specifics of charging the personal property tax on items used for business purposes: Evidence from municipalities of the Stavropol Krai

The specifics of charging the personal property tax on items used for business purposes: Evidence from municipalities of the Stavropol Krai

The economic, fiscal, and workforce impacts of coal‐fired power plant closures in Appalachian Ohio

AbstractThis study examines the economic, fiscal, and workforce impacts of two Dayton Power & Light (DP&L) coal‐fired power plant closures in Adams County, Ohio. The decommissioning of these facilities, and the closure of an associated training centre, will result in over 1,100 total lost jobs in the Appalachian region. A skillshed analysis revealed that displaced workers transitioning to emerging occupations with similar skill requirements will experience wage decreases. Decommissioned power plants in Ohio no longer pay tangible personal property (TPP) taxes, which will result in $8.5 million in lost tax revenue for local governments. These findings suggest that a multi‐pronged recovery effort will be required to assist this region, which has implications for similar communities in Appalachian Ohio dealing with coal plant closures.

Международный опыт налогообложения движимого имущества организаций

Various and ambiguous changes in business personal property taxation in Russia in 2013–2018 demonstrate the relevance of a careful analysis of this problem, including the international experience context. The article considers business property tax characteristics in the OECD and BRICS by means of the comprehensive tax law analysis with regard to these countries. The authors emphasise the experience of the countries, which treat (or treated earlier) elements of the personal property taxation. In these cases the authors consider tax design in detail and establish that only in Russia, Japan and the US personal property tax is widely treated. Furthermore, there is a global trend towards taxation of the only real property. Thus the planned business personal property tax abandonment in Russia is not just a tax exemption, it is a transition to the generally accepted and reasonable tax standard.

Characteristics of the main changes in the tax on property of individuals

The personal property tax has undergone many transformations. The paper analyzes changes in the taxation of individuals' property that came into force on January 1, 2015. The results of reforming the tax on property of individuals are summarized. The positive and negative aspects of the fundamental changes in this tax are given.

Estimating the Manufacturing Employment Impact of Eliminating the Tangible Personal Property Tax: Evidence From Ohio

Proponents of eliminating the tangible personal property tax often argue that doing so will boost employment in capital-intensive industries, presumably because businesses will invest some portion of the marginal tax savings in labor. Theory strongly suggests this reasoning may be flawed: reducing the tax on capital reduces its cost and therefore incents a substitution away from labor. This study is the first effort to estimate the employment impact of exempting tangible personal property from the property tax in the manufacturing sector in Ohio. Using the synthetic control method, we find that manufacturing employment in Ohio is lower than what it would have been had the tax not been eliminated. From our preferred model, the estimated effect is 19,300 fewer jobs per year on average, but we consider other models that produce estimates between 13,400 and 28,400 fewer jobs per year, on average.