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07-08: Approaches to Implementing Property Tax Reform
The Critical Elements Of Sustainable Property Tax Implementation And Reform”
Institute of Revenues Rating and Valuation, United Kingdom
Designing and implementing land and property tax reforms is a critical element of a country’s economic health. So often these reforms are built around advice from international experts. This initial advice can often influence the overall project. The quality of this advice must be second to none. Those involved must research the country situation and ensure that any advice suits the current circumstances of that country. Any reforms must be fit for purpose and sustainable. It is unacceptable for consultants to deliver “what they think is best” rather than properly researched proposals that deliver workable and acceptable systems.
One of the critical elements of the reform process is the effective involvement of local experts who have sufficient authority to ensure productive project management. Too often “local advice” is either ignored or totally disregarded. It is important that “in country” protocols are observed particularly those that impact on the timely delivery of the objectives of the project.
This paper seeks to identify the key elements to the delivery of successful and sustainable reforms. Those involved must take ownership of their role in any project. Integrity must always prevail. Technical assistance should be seen as a “duty” to those who retain you.
Workable Solutions for Property Tax Reform
1Almy, Gloudemans, Jacobs & Denne, United States of America; 2International Association of Assessing Officers
This paper elaborates on recommendations in the literature for evaluating the need for property tax reforms. It summarizes common reform issues and makes recommendations for reform programs. It contains policy and practice examples that are worthy of examination.
Success Factors for a System for Property Taxation and the Consequent Risks
Netherland Council for Real Estate Assessment, Netherlands, The
Based on our experience in the Netherlands it is more than tempting to describe a best-practice that would serve as a model for other jurisdictions to compare with, adjust to or just to copy and implement. We of course agree that it is appropriate for jurisdictions considering implementing a system of property tax to study and learn from systems that function well. However we do not suggest copying a best practice. Rather than focussing on what the best system is that others should copy, we propose to analyse the choices that have been made in shaping and developing successful systems and to explore the environment in which these systems have evolved. Along with these choices come the related risks. In our paper we describe the fundamental choices that have to be made and the choices we made in the Netherlands. These choices deal with aspects of the environment in which the property taxes are to be levied and with the risks that are inevitably related to these choices. By doing so we hope to be able to contribute to effective implementation and improvement of systems for property taxes in different circumstances.
Improving Land Valuation Models in Sparse Markets: A Comparison of Spatial Interpolation Techniques Used in Mass Appraisal
1Ulster University, Newtownabbey, Northern Ireland; 2African Tax Institute, University of Pretoria, Pretoria, South Africa
The research in this working paper has set up the groundwork for a national AVM of Malawi, Africa, using only secondary data collected by the 2010-2011 Integrated Household Survey. Model variables include physical characteristics of the property, economic variables, as well as location-specific distance and climate variables. This paper additionally helps bridge the current gap in development property tax literature by evaluating response surface analysis (RSA) at a national level, specifically with respect to technical standards of the International Association of Assessing Officers (IAAO). Our initial research shows that variables with positive effects on perception of value include agricultural plot size and estimated annual income (rental) potential. Plots situated further from agrimarkets and auction locations are perceived to be less valuable. Negative effects are associated with sandy soil, higher average annual rainfall, moderate to steep slopes, and plots situated in swamps or marshlands. The ordinary kriging-based predictions, while seemingly less likely to overestimate perceived value, are more regressive. Ordinary kriging achieves superior scores of vertical equity, but inferior scores of uniformity when compared to a current OLS model with location factor adjustment variables derived from RSA.