Property Tax Reform in Developing and Transition Countries

Table of Contents
Table of Contents .......................................................................................................................... ii
List of Tables ................................................................................................................................ iii
Executive Summary ..................................................................................................................... iv
1. Introduction ........................................................................................................................... 1
2. Why the Enthusiasm for Property Taxation ..................................................................... 2
3. Democratic Local Governance and the Property Tax ....................................................... 3
4. Revenue Performance ........................................................................................................... 3
5. The Annual Property Tax in Practice: Policy Choices ...................................................... 6
5.1 Rental Value Systems....................................................................................................... 6
5.2 Capital Value Systems ..................................................................................................... 7
5.3 Land Value Systems ......................................................................................................... 9
5.4 Area-Based Systems ....................................................................................................... 10
5.5 Which is the Best Practice ............................................................................................ 11
5.6 Tax Rates ........................................................................................................................ 13
5.7 Exemptions and Relief ................................................................................................... 14
6. Administrative Practices ..................................................................................................... 16
6.1 Constraints to Administrative Reform ........................................................................... 16
6.2 The Conventional Recommendations ............................................................................ 16
6.2.1 Have a Complete Tax Roll ...................................................................................... 16
6.2.2 Record Keeping ...................................................................................................... 17
6.2.3 Valuation ................................................................................................................. 18
6.2.4 Collections, Enforcement and Appeals ................................................................... 19
6.3 Measuring Administrative Success ................................................................................ 21
7. Taxes on Property Transfers .............................................................................................. 21
8. Property Taxes in Rural Areas........................................................................................... 23
9. The Way Forward ............................................................................................................. 23
References .................................................................................................................................... 26
Annex A........................................................................................................................................ 30
Annex B ........................................................................................................................................ 33