Determinants of Property Tax Revenue : Lessons from Empirical Analysis

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 reali...

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Main Authors:	Awasthi, Rajul, Le, Tuan Minh, You, Chenli
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
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 http://hdl.handle.net/10986/34485

id	okr-10986-34485
recordtype	oai_dc
spelling	okr-10986-344852022-09-20T00:10:54Z Determinants of Property Tax Revenue : Lessons from Empirical Analysis Awasthi, Rajul Le, Tuan Minh You, Chenli 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 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. 2020-09-18T14:02:11Z 2020-09-18T14:02:11Z 2020-09 Working Paper http://documents.worldbank.org/curated/en/360151600192574693/Determinants-of-Property-Tax-Revenue-Lessons-from-Empirical-Analysis http://hdl.handle.net/10986/34485 English Policy Research Working Paper;No. 9399 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Latin America & Caribbean Australia Canada Chile United States
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	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
spellingShingle	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 Awasthi, Rajul Le, Tuan Minh You, Chenli Determinants of Property Tax Revenue : Lessons from Empirical Analysis
geographic_facet	East Asia and Pacific Latin America & Caribbean Australia Canada Chile United States
relation	Policy Research Working Paper;No. 9399
description	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.
format	Working Paper
author	Awasthi, Rajul Le, Tuan Minh You, Chenli
author_facet	Awasthi, Rajul Le, Tuan Minh You, Chenli
author_sort	Awasthi, Rajul
title	Determinants of Property Tax Revenue : Lessons from Empirical Analysis
title_short	Determinants of Property Tax Revenue : Lessons from Empirical Analysis
title_full	Determinants of Property Tax Revenue : Lessons from Empirical Analysis
title_fullStr	Determinants of Property Tax Revenue : Lessons from Empirical Analysis
title_full_unstemmed	Determinants of Property Tax Revenue : Lessons from Empirical Analysis
title_sort	determinants of property tax revenue : lessons from empirical analysis
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/360151600192574693/Determinants-of-Property-Tax-Revenue-Lessons-from-Empirical-Analysis http://hdl.handle.net/10986/34485
_version_	1764481001523773440

Determinants of Property Tax Revenue : Lessons from Empirical Analysis

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