FIG Peer Review Journal


The Evolution and Operation of Recurrent Property Taxation (4385)

Vince Mangioni (Australia)
Mr. Vincent Mangioni
Director Property Economics
University of Technology Sydney
Faculty of Design Architecture & Building
PO Box 123
Corresponding author Mr. Vincent Mangioni (email: vincent.mangioni[at], tel.: + 61 2 9514 8900)

[ abstract ] [ paper ] [ handouts ]

Published on the web 2010-01-14
Received 2009-11-19 / Accepted 2010-01-14
This paper is one of selection of papers published for the FIG Congress 2010 in Sydney, Australia and has undergone the FIG Peer Review Process.

FIG Congress 2010
ISBN 978-87-90907-87-7 ISSN 2308-3441


Recurrent property taxation is an important revenue stream for sub-national governments around the world. In its various forms, land value as a base of recurrent taxation has become less common in many countries over the past twenty years. This has largely been attributed to a number of factors ranging from pressure imposed by opponents of land value taxation, to challenges against non-demonstrable methods of assessing the underlying value of land in highly urbanized locations, where land transactions are few. This paper is a review and critique of the evolution of recurrent property taxation and the transition of the base of this tax from land to improved value in some countries. It analyses the methodological voids which have armed opponents of land value taxation with the justification for such a transition to alternate bases. It further articulates the difference between local government council rating and a broader non-earmarked land tax. A United States case study has been used to demonstrate the demise of land as the base of recurrent property taxation and the emerging similarities in Australia. In conclusion, the paper provides a framework for the harmonious coexistence of land value taxation and the rating of land and establishes key requirements in developing and maintaining a robust land value taxation system in highly urbanized locations in which recurrent property tax is an important revenue source.
Keywords: Property taxes; land value; improved value; rating; recurrent property taxation