Property tax in different countries Banu Faizullayeva, Gulnaz Telman

Agenda: Property tax: definition, history, purpose.. Highest vs. Lowest property tax (Countries: examples, graphs, analysis) Property tax in different countries Conclusion

Tax on property Tax on property is defined as recurrent and non-recurrent taxes on the use, ownership or transfer of property. These include taxes on immovable property or net wealth, taxes on the change of ownership of property through inheritance or gift and taxes on financial and capital transactions. This indicator relates to government as a whole (all government levels) and is measured in percentage both of GDP and of total taxation.

Had a great harvest? Part of earned to government In history … PT from wealthiest landowners based on the productivity of land – Egypt, Babylon, Persia Had a great harvest? Part of earned to government

Property tax is collected to support the administration of the state, county, port, road district, rural library, metropolitan park, cities and towns, schools, fire protections districts and miscellaneous taxing districts. 

Where our taxes really go…

What is taxed? Residential Commercial Industrial Farm Properties

Who determines the tax rate? Locally, government Central government

How is it taxed? Area-based assessment Market-value assessment Rental value assessment Self-assessment

How to calculate

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In United kingdom Before 1990 – property rates After 1990 – poll taxes – community charges From 1993 – council taxes - 8 bands 2 adults -100%, 1 adult – 75%

In russia Lower then 300 000 Rubles 0,1% (inclusive) Max rate of 2.0 % value of the property Paid annually Tax amount is assessed by tax authorities based on data provided by the cadastral and registry federal authority and by surveying companies that maintain technical building records Lower then 300 000 Rubles 0,1% (inclusive) From 300 000 Rubles to 500 000 Rubles within 0,1 – 0,3 % (inclusive) Higher then 500 000 Rubles within 0,3 – 2,0% (inclusive)

Property Tax as a ‘Good’ Tax Efficient Equitable Administrative innovation Ideal source of local government revenue Promotes transparency and accountability

The ‘Good’ Tax Turning into a ‘Bad’ Tax Using mobile properties as the tax base Using area-based assessment to assess the tax base Significant variation in enforcement and tax administration among localities Not considering the income earning capacity of property owners

Reasons for low Revenue Contribution of PT in Developing Countries Poor tax administration Taxpayers attitude Weak enforcement

Countries without property taxes

Conclusion: The four broad types of property taxes are land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects) and intangible property.  Properties in different classes are taxed at different rates The property tax rate is typically given as a percentage. It may be expressed as a per mil (amount of tax per thousand currency units of property value), which is also known as a millage rate or mill (one-thousandth of a currency unit).