Real Property Tax Research Articles

An Analysis of Housing Market Dynamics: Evaluating Potential Bubbles and Their Implications on Affordability

Purpose Over the past three years, Canada experienced rapidly increasing inflation. Among the many challenges this brought for Canadians, the issue of the affordability of houses and rents is a fundamental one. The rise in Canada’s ratio of the average house price to average rent has fostered further research regarding how this value has changed during the pandemic and its implications for today. This paper extends the research of Allen Head and Huw Lloyd Ellis's exploration of the speculation that Canada is experiencing a housing bubble. A pricing framework is used to assess whether the growth of house prices in Canadian cities since 1987 can be explained by variations in rents, real interest rates and property taxes, known as the “fundamentals.” The magnitude to which house prices have appreciated is contingent upon how participants in the housing market perceive real interest rates. Methodology Firstly, the relevant data needed to conduct our econometric analysis was collected. Data was updated for 27 central metropolitan areas (CMAs) in Canada from 1987 to 2021. Specifically, some of this raw data included rent prices, mortgage rates, interest rates, inflation rates, average and median income, provincial population, and the Consumer Price Index (CPI). In addition, the MLS price was used. Compiled by the Canadian Real Estate Association (CREA), it is an index that collects monthly statistics for properties sold via the Multiple Listing Service (MLS) and accessed by Canadian realtors. Once the raw data was compiled, we calculated the predicted price using a user cost model and compared it to the actual price. This user cost model considers factors such as rents, property taxes and interest rates. From this, we calculated the price-rent ratio. The predicted price-rent ratio, named “User Cost Model price,” as presented in the red lines in the following graphs, demonstrates what our model predicts for overvaluation in the housing market. Comparatively, the actual price-rent ratio, “MLS Average,” presented as the blue line, depicts what we observe in real-time. We then computed the differences between the predicted measure from our model and the actual observed MLS price for each year and city. This differential we calculated is a time series of “overvaluations’’ and “undervaluations.” Using this data for each city, we used this measure of difference in valuation in 2020 and 2021 and compared it to the average difference in valuation over an updated base period. Results and Conclusions Referencing the series of graphs produced, we observe substantial increases in overvaluations in Ontario cities. For example, St. Catharines, London and Windsor depict sizeable overvaluations, in addition to other cities across Canada, such as Toronto, Montreal, Gatineau, and Vancouver. Comparatively, we observed undervaluations in cities in Quebec, such as Québec City, Trois-Rivières, and Saguenay. Cities in the Prairies and Atlantic, such as Calgary, Edmonton, and Saint John, seem to share a similar result of undervaluation. However, each appears to rise in overvaluation again in 2020. While there are many reasons we can attribute to these trends, for now, we may only speculate what this means. We learn from our analysis that overvaluation continues to grow despite increasing rents. These results are particularly interesting for our study because there was a possibility that these rent increases were actually anticipated by housing market participants, which should have accounted for some overvaluation in the past. However, based on our work, this is not the case. If this were true, the overvaluation gap would have narrowed, not widened, as in our case. With this updated dataset, upcoming researchers will be able to investigate deeper into the reasons behind the widening overvaluation gap in many Canadian cities. As statistics become more publicly available, we can continue to enhance this dataset and examine how government policies and housing market participants affect interest rate expectations.

Real Property Tax Administration System Implementation and Clients’ Satisfaction in Calamba City Barangays

The study attempted to investigate real estate owners' views on computerizing the Real Property Tax Administration in Calamba City's barangays. Transparency, accountability, involvement, and compliance were critical due to the high rate of delinquent taxpayers. The study analyzed the connection between customer satisfaction and implementation level. A questionnaire was used to collect 140 responses. Mean, correlation, and Likert scale were used to analyze the data. The main findings of the study revealed that real estate owners in barangay had a positive view of the computerization of real estate tax administration. The combined percentage of "very satisfactory" and "satisfactory" responses was consistent in all key areas. This indicates that the public perceived the local government's services as proactive and customer-centric. Since the variables were inter-connected in a way, this study proved that the implementation of the Real Property Tax System and the Client’s Satisfaction level in Calamba City did meet the expected outcome of the research. Respondents positively matched all the questions, which led to a satisfactory result or more, and projected the implementation of the system. The Sub-Variables Responsiveness, Reliability, and Assurance provided a lot of positive results in this research; the answers of the respondents created an idea of advancing the proposal of this study. Despite the high satisfaction rate, there is always room for improvement. Therefore, the output of the study recommended an action plan to enhance the ongoing initiative, develop innovative approaches, and boost the confidence and productivity of barangay workers.

부동산 공시가격 현실화 정책에 따른 재산세부담의 변화 분석

This study focused on the impact of the policy of realizing published prices of real estate on real estate property taxes and estimated the property tax burden using real estate price announcement data for land, single-family house, and apartment from 2017 to 2020. In addition, the changes in tax burden by year were analyzed and compared by real estate type, price level, and region to discuss the impact of the published price realization policy and suggest policy implications. According to the analysis of changes in the estimated property tax burden, the property tax burden increased significantly after the realization policy, and the gap in the property tax burden by region and price level widened. And the tax burden increased intensively on specific real estate types and high-priced real estate. This suggests that the policy of applying the realization of the published price differently by price range can rather hinder vertical and horizontal equity of taxation among taxpayers.

Certainty of implementation of assessor’s office mandates: The case of Jolo Municipal Government

Philippine local governments (LGUs) rely on real property tax (RPT), however its implementation varies. This study evaluates Jolo, Sulu's real property tax system as perceived by municipal government personnel. Purposive sampling yielded 100 employee-respondent survey responses. Study findings: Jolo Municipal Government employee-respondents illustrate a gender gap. Employee-respondents have a positive perception of the Assessor's Office and its mandates, rating it agree in all three areas: Timeliness of Property Assessment, Accuracy of Property Valuation, and Customer Satisfaction. However, the study also shows that the length of service affects employee-respondents' perception of the Assessor's Office depending on their work experience, specifically those with under 10 years of service and those with 21-30 years, or vice versa; and the analysis of correlations among sub-categories under the extent of office mandate implementation shows significant correlation between office performance aspects. There are strong positive relationships between property assessment timeliness, valuation correctness, and client satisfaction. This study advises: Jolo Municipal Government may a gender study of its workforce and implement local government gender equality and diversity policy. Jolo Municipal Government may offer training, mentoring, or scholarships to employees with higher education or longer service to improve their skills and abilities. The Jolo Municipal Government may regularly survey and consult property owners and other stakeholders to improve assessment services and processes. Mixed methods study may examine how the Assessor's Office requirements affect the Jolo Municipal Government's economic, social, and environmental consequences from property owners and other stakeholders.

Impact of real property tax tools of Sulu Provincial Assessor’s Office: employees’ perspectives

The effect that real property tax instruments at the Sulu Provincial Assessor's office have on Sulu local government entities is the subject of this study. One hundred respondents were included in the study; most were middle-aged (26–39), with over half of them being employed full-time. Employees were highly in agreement about these technologies' efficacy, according to the survey, with tax mapping activities and computerization through electronic methods obtaining "Strongly Agree" ratings. For the Schedule of Market Value category, on the other hand, the rating was "Agree," indicating a somewhat lower but still favorable opinion of the fairness and accuracy of property assessments. When the tools were categorized based on gender, age, or work position, the study also did not find any discernible variations in the degree of impact of the tools. When the data was sorted by duration of employment, there were notable distinctions, indicating that employees with varying tenures had differing perceptions. The study found that respondents, independent of demographic variables, had a higher degree of agreement about the perceived impact and effectiveness of different real property tax instruments. The study's conclusion emphasizes how crucial it is to take into account the various backgrounds and experiences of staff members when assessing how well the Sulu Provincial Assessor's office's real property tax tools work.

Budowle inżynieryjne i ich (nie)opodatkowanie słowackim podatkiem od nieruchomości (w kontekście V4)

The paper deals with real property tax regulation, especially in the Slovak Republic, but also in the rest of the Visegrad group countries (Czech Republic, Poland, and Hungary) in the context of its position and role in funding local self-governments in all the countries studied, with a particular focus on engineering structures as a potential object of taxation, which is excluded from taxation in Slovakia. The authors focus primarily on the legislation of the Slovak Republic, and using the comparative method, they search for models of (non)inclusion of these objects into real property taxation among the V4 countries. They draw conclusions on the different approaches applied and suggest the most comprehensive system is in Poland. Based on a comparison of the real property tax revenues in the countries studied, these different approaches can be connected to the low real property tax revenues in the Slovak Republic (and also in the Czech Republic).

Historical Development of Real Property Tax Regulation in the Territory of Slovakia in the period of 1918–2005

Historical Development of Real Property Tax Regulation in the Territory of Slovakia in the period of 1918–2005

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

Real Property Tax in Slovakia – Scoping Review

Real property tax is a common type of tax applicable often as a local tax and a source of local revenues, which is also the case in the Slovak Republic. This topic is gaining importance in general due to the decreasing revenues of local budgets and the increasing financial requirements of municipalities to ensure services for the citizens. Even though there is a wide range of available scientific literature on the topic, it has not yet been systematically summarized to identify the thematic spectrums of interest to the scientific community and there are areas not yet covered by the research. This review aims to identify the state of knowledge (scientific literature) on the issue of real property tax in the Slovak Republic and the research gap. For this reason, the authors have included the broadest possible range of available scientific literature on the topic of Slovak real property tax searched through the most relevant international databases (Web of Science and Scopus) and a complex national database comprising the works of Slovak academia (CREPČ), even in its broader context of local taxation and local government. The results were acquired by use of the method of a scoping review. Our findings show an increasing trend in the number of publications and authors on the topic in the course of time and their comparable focus on the legal and economic aspects. We identified a high preference for general assessment and certain topics in particular (e.g. tax revenues, tax rates) together with a lower interest in very specific problems and more interdisciplinary issues, where we see the potential for further research.

Real Property Tax Collection in Sta. Josefa, Agusan Del Sur, Philippines: An Exploratory Research Analysis

This research study is conceptualized to provide information on the real property tax collection in Sta. Josefa, Agusan del Sur. This employs a documentary-descriptive-research method using secondary sources of information generated from archives, and documents such as the Certified List of Real Property Tax Delinquencies, and the Electronic New Government Accounting System. Moreover, JASP is utilized to illustrate the tax collection delinquency on real property with and without government intervention. The findings of this study include that there is a compelling linkage between government intervention on tax collection of real property. It describes the importance of the interventions as a way of improving collection efficiency and reducing tax delinquency.

INTERNAL REVENUE ALLOTMENT: THE CASE OF BARANGAY CALAMBA, CEBU CITY

This study focused on exploring the knowledge level of awareness and implementation of the Internal Revenue Allotment in Barangay Calamba, Cebu City. It sought to determine the answer 1. What is the demographic profile of the respondents, 2. What is the level of awareness of the respondents towards internal revenue allotment? 3. What are the strategies used by the Barangay Captain in collecting internal revenue allotment and its level of implementation? 4. What is the perception of the respondents on the contribution of the collected Real Property Tax to the operation of Barangay Calamba? The research design used was descriptive, that is by employing percentage distribution and frequency counts in presenting and analyzing the data obtained from a sample of fifty-eight (58) respondents. A validated researcher-made questionnaire was used to collect the primary data. The findings on this study revealed There was a barangay development plan; however, budget allocation is the problem observed, and these plans were not fully implemented. With those problems, this paper suggests that education be given importance, it is recommended that barangay personnel and authorities participate in an integrated capacity-building program. Educating people on practical issues such as dealing with the administration of IRA towards development, not only the officials but most importantly, the residents or the ordinary people too, so that they will be able to participate and contribute to their own development.

Regulation of the subject of property tax and the principle of financial autonomy of municipalities

The real property tax, which is the own income of municipalities, is the most efficient source of income amongst all other taxes of local communities under this category. At the same time, it is a well-established approach in legal scholars writings that the higher the local self-governments own income, the greater its financial independence. Thus, respecting the constitutional principles of the local self-government, the legislator is responsible for structuring the legal regulations on the particular own revenues of the local self-government in such a way so as not to lead to such an interpretation that would jeopardize the efficiency of the given revenue source or, potentially, pose a risk of reducing the self-government's independence. Regulating the subject of taxation of the real property tax, as in the case of any public law levy, requires adherence to higher standards of the legislative procedure. Thanks to it, both the public interest (interest of the local self-government) and the legal and economic interest of the taxpayer may be secured. The article presents not only examples of the legislator's omissions in respecting the principles of proper legislation with regard to the subject of property taxation. Above all, the author pointed out the connection between the failure to respect the principles of proper legislation and the risk of limiting the financial independence of municipalities. In view of the conclusions reached, it was also necessary to indicate de lege ferenda conclusions.

In brief

In brief

In brief

Journal Article The case for (and challenges surrounding) increased de-enveloping within residential and commercial real property taxation Get access Trusts & Trustees, Volume 29, Issue 3, April 2023, Pages 175–177, https://doi.org/10.1093/tandt/ttad016 Published: 10 April 2023

Internal Revenue Allotment: The Case of Barangay Calamba, Cebu City

This study focused on exploring the knowledge level of awareness and implementation of the Internal Revenue Allotment in Barangay Calamba, Cebu City. It sought to determine the answer 1. What is the demographic profile of the respondents, 2. What is the level of awareness of the respondents towards internal revenue allotment? 3. What are the strategies used by the Barangay Captain in collecting internal revenue allotment and its level of implementation? 4. What is the perception of the respondents on the contribution of the collected Real Property Tax to the operation of Barangay Calamba? The research design used was descriptive, that is by employing percentage distribution and frequency counts in presenting and analyzing the data obtained from a sample of fifty-eight (58) respondents. A validated researcher-made questionnaire was used to collect the primary data. The findings on this study revealed there was a barangay development plan; however, budget allocation is the problem observed, and these plans were not fully implemented.

Demographic and Economic Characteristics of Population as Determinants of the Revenue From The Real Property Tax in the Slovak Republic

This paper examines how the demographic and economic structure of the municipalities´ population relates to the share of real property tax on local tax revenue in the Slovak republic. Shares of the productive population, unemployed population pupils, the population aged less than 14 years, and the population aged over 65 years in the total municipal population are involved in the regression analysis based on the panel data. The research covers 2,926 municipalities in the period 2005-2020. Estimation results show a positive relationship between the dependent variable and variables referring to the productive population, unemployed population, and population aged less than 14 years. A negative relationship is observed in the case of variables referring to pupils and the population aged over 65 years.

Problematyka opodatkowania budowli. Wybrane zagadnienia

The issue of taxation of non-building structures. Selected issues The study concerns the issue of taxation of non-building structures with real property tax. According to Article 2(1)(3) of the Local Taxes, Fees and Charges Act of January 12, 1991, non-building structures or parts thereof related to the conducting of business activities are subject to real property tax. In general, it must be noted that one can find extensive studies of real property tax in the scientific literature, while the issue of real property taxation of non-building structures has been treated rather partially. It should be emphasized that the titular issue has so far been the subject of mutually exclusive views in the doctrine, and has not been uniformly viewed in the judicature. The primary intention of the research is to characterize what impact the current legal regulations have in this regard to determine its extent on the tax law system. It is necessary to consider, in the context of the current legal regulations, what are the directions of changes of the analyzed institution, in particular through the perspective of real property tax dependent on the value of the non-building structure.

Local revenue generation system: Its contribution to the development of the Municipality of Bacolod, Lanao del Norte

This study was designed to ascertain the concept of revenue generation system of Bacolod, Lanao del Norte, through the completely enumerated elected officials and permanent employees sample respondents. The pertinent data were obtained through the use of a structured questionnaire and with the help of key informants. The study utilized a cross-sectional survey design to analyze and interpret the data using frequency counts, percentage distributions, and a weighted mean. For the major findings, the local revenue generation of the municipality has increased by roughly 73.52% from 2016 to 2018. Administrative activities help the municipality cope with development, namely the issuance of ordinances, personnel augmentation, and collection strategies. Moreover, respondents were undecided about whether revenue generation contributed to infrastructure and purchases of assets. The majority of the respondents agreed that the municipality’s local revenue generation contributes to the social welfare of its constituents. However, the respondents disagreed that locally generated revenue augments the 20% development fund. The study revealed that there is a big difference between the 2018 and 2020 Real Property Tax (RPT) collection. No committee was created to monitor and supervise the municipal revenue generation system. The municipality, through its partnership with TESDA, provides skilled-job opportunities to its constituents and participants.

The case for (and challenges surrounding) increased de-enveloping within residential and commercial real property taxation

Abstract This article offers an appraisal of England and Wales’ real property tax regime, exploring both residential and commercial property taxation from the perspective of enveloping. It will be demonstrated that the residential property regime has been successful in closing many enveloping-based taxation loopholes, whilst the commercial property regime has taken a clear policy-based stance in permitting a limited degree of inheritance tax mitigation. That said, though both regimes are capable of drawing significant yields from direct property taxation, both struggle in obtaining revenue from enveloped holdings. Given the current socio-economic landscape in England and Wales, a de-enveloping policy is desirable. Unfortunately, uncertainty surrounding overseas entity classification—particularly as regards foundations and anstalts—thwarts this preferred de-enveloping aim. This obstacle has not been overcome by the beneficial ownership register recently introduced by the Economic Crime (Transparency and Enforcement) Act 2022. Remedial reforms are therefore proposed.

Has the Newly Imposed Property Tax Controlled Housing Prices? An Analysis of China’s 2009–2020 Interprovincial Panel Data

The stability of the real-estate market is crucial to China’s economic development and, in times of crisis, the economy will experience systemic adverse reactions that require appropriate regulation by the state using tax policy tools. Therefore, we analyzed the impact of real-property tax on house prices using panel data for 31 provinces in China from 2009 to 2020 using an empirical method, i.e., the instrumental variables approach. The empirical results show that each of the previous property-related taxes actually contributed to the increase in house prices and did not have a dampening effect. The newly introduced property tax will lead to a decline in house prices, which will help to alleviate the overheating of real-estate investment and mitigate the real-estate bubble crisis. A rational view of the impact of a property tax on housing prices needs to be taken in the context of factors such as income levels, consumer price levels, loan rates, and Chinese consumer culture. In order to achieve the goal of “no speculation in housing”, we also need to pay attention to the regulating effect of a property tax in combination with many other factors. This study is important for promoting property tax reform, curbing overheated real-estate investment, and promoting healthy economic development.