Determinants of Property Tax Revenue
Many developing countries have struggled with realizing sufficient revenues from property tax. However, as developing countries experience economic growth, they are also seeing property values rising, providing a bigger tax base from which to realize revenues. Technology has made tax administration easier and more effective and developing country governments have been improving their quality of governance and considering introducing or enhancing property tax revenue collection to diversify their tax and fiscal revenues. This paper explores the determinants of property tax revenue using data from the United States, Canada, Australia, Chile, and the Organisation for Economic Co-operation and Development for 2006 to 2016, using a fixed effects model. The results show that increases in gross domestic product and population lead to increases in property tax revenue and an increase in federal transfers decreases it. The outcomes of the empirical analysis highlight the statistically significant impacts on property tax collection of a country's state of development and its demographic, fiscal, and property tax–specific characteristics. A critical question for further research is whether and how the empirical methodologies and specifications as applied to the set of developed economies would be replicated in the context of developing countries.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020-09
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| Subjects: | PROPERTY TAX, TAXATION, REVENUE MOBILIZATION, TAX RATE, LOCAL GOVERNMENT REVENUE, LOCAL GOVERNMENT SUBSIDIES, LOCAL GOVERNMENT TAXATION, SALES TAX, STATE GOVERNMENT SUBSIDIES, STATE LOTTERY, STATE TAX, |
| Online Access: | http://documents.worldbank.org/curated/en/360151600192574693/Determinants-of-Property-Tax-Revenue-Lessons-from-Empirical-Analysis https://hdl.handle.net/10986/34485 |
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| Summary: | Many developing countries have struggled
with realizing sufficient revenues from property tax.
However, as developing countries experience economic growth,
they are also seeing property values rising, providing a
bigger tax base from which to realize revenues. Technology
has made tax administration easier and more effective and
developing country governments have been improving their
quality of governance and considering introducing or
enhancing property tax revenue collection to diversify their
tax and fiscal revenues. This paper explores the
determinants of property tax revenue using data from the
United States, Canada, Australia, Chile, and the
Organisation for Economic Co-operation and Development for
2006 to 2016, using a fixed effects model. The results show
that increases in gross domestic product and population lead
to increases in property tax revenue and an increase in
federal transfers decreases it. The outcomes of the
empirical analysis highlight the statistically significant
impacts on property tax collection of a country's state
of development and its demographic, fiscal, and property
tax–specific characteristics. A critical question for
further research is whether and how the empirical
methodologies and specifications as applied to the set of
developed economies would be replicated in the context of
developing countries. |
|---|