《Tax Aspects of Domestic Resource Mobilisation – a》由会员分享，可在线阅读，更多相关《Tax Aspects of Domestic Resource Mobilisation – a（7页珍藏版）》请在金锄头文库上搜索。
1、Tax Aspects of Domestic Resource Mobilisation a Discussion of Enduring and Emerging IssuesLand TaxUN Financing for Development Office & IFAD Rome, 4-5 September 2007M GroteNational Treasury, South AfricaForms of property taxation3 basic form of property taxation: Tax based on annual or rental value
2、of property (estimated net rental value pa) Tax based on capital value of land & improvements tax based on assessed valueo of land & improvements Tax based on site or land value: Kenya, Australia, New Zealand, (South Africa), Taiwan land value system is the site system, excluding improvements such a
3、s factory buildings or houses or crops narrow tax base necessitating higher tax rates Ad valorem property taxes target ownership of fixed real estate: Based on assessed value or a closely related proxy Agricultural land tax (value of unimproved land in its agricultural use) Not to disincentivise pro
4、ductive investments Value does not include improvements such as fencing, drainage, dams Opportunity costs Hence, market value of the freehold without encumbrances & improvements Urban property tax or rates or site value tax is on market value: Flat rate tax would tax value of building & land (total
5、improved land) Value of land & fixed investments/improvements In urban context market value readily observable, determined by valuers based on active property market close comparables (recently traded properties)Economic theory & rationale for land taxArguments in favour of land tax (see H George, J
6、ohn Locke): To provide for own-source revenues for local governments & land reform Beneficial land market effects: lower entry price, stop under-utilisation of prod. land Land taxes should not distort economic incentives (fixed supply of land) Equitable, as it targets unearned income: Value capture
7、rent caused by public investment or inherent potential of land without investment/activity of landowner (benefit received principle) Is progressive as owners of large properties must pay more (=ability to pay principle) Automatically compensates for land value changes if land value improves because
8、of public infrastructure projects, value & tax increase commensurately Addresses “free-rider” problem Public sector may invest even more, thereby improving agricultural outlook Targeting unimproved land may lead to productivity-enhancing investments Disincentive to land speculation in both urban & r
9、ural areas Assist in breaking up large farm units with accompanying increases in production intensified land use (see Chile land reforms) Relatively easy to administer (cannot hide land) improves tax morale Arguments against: Local governments must rely on more than one tax Valuation & admin could b
10、e challenging for low income countries Land tax may intensify intensive land use with adverse impact on environmentAdministrative systemsValuation methods: Area based land tax: measured land area adjusted by fertility of soil & location Self-appraisal: taxpayer provides value assessment but under-va
11、luation arrested with expropriation clause whereby govt. buys land declared value Computer Aided Mass Appraisal: en masse valuations by relying on key statistical coefficients (both used in rural & urban areas) Banding: assess properties according to 1 to 7 value bands in lieu of individual valuatio
12、ns Collection should be done at local level: Globally, taxation most efficient when tax collection & expenditure of these revenues executed by same level of government (subsidiarity/Tiebout principle) Tax rate be set by local government (effective collection in SA already at 0.5%) At this rate land
13、tax capitalisation (=neg. impact on land values) will be low (in case of SA at 1% of land tax rate, land values will decline by 5%) Communal areas without freehold rights should be exempted / fair assignment of shares Tax relief for poorest cohorts: sufficiently high thresholds (admin expediency, ph
14、asing-in to improve acceptability BUT not for low agricultural produce prices) Special relief measures or tax credits in times of drought / catastrophic eventsOther design issues or tax alternativesValue of uniform and up-to-date cadastre: Choice of tax base for valuation informed by availability /
15、verifiability of data In cities choice between rental value, capital value, land value, market value In rural areas: determined by land use potential (climatic regions, soil types, potential for crops multi-year cash flow potential) International practices & justification for land taxes (World Bank,
16、 2006): Promoting urban renewal Ensuring productive use of restituted land Defining property rights against which emerging farmers can borrow Creating land valuation capacity (needed for Capital Gains Tax) Ease in structural / redistributional reforms Saving on assessment costs Discouraging foreign absentee ownership Arresting excessive speculatio
