Property taxation in Israel: a non ad valorem approach

Portnov, Boris A.; McCluskey, William; Deddis, W.G.

doi:10.1016/s0264-8377(01)00029-1

Cited by 10 publications

(7 citation statements)

References 7 publications

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“…A comprehensive investigation on the incidence of all types of taxes revealed that property tax, which is the main type of local tax, is regressive in all developed countries examined: Denmark, Sweden, Finland, Norway, Switzerland, France, Australia and the United States (Prasad and Deng 2009). The same conclusion follows from a review of additional studies in the United States (Oates and Fischel 2016) and in Israel (Horn 2008, Portnov et al 2001. Prasad and Deng (2009) have raised intriguing hypotheses regarding the reasons for the difference between European countries' generous welfare states with regressive taxation and the progressive tax system in the United States.…”

Section: Introductionmentioning

confidence: 82%

Social Construction and the Progressivity of Local Tax Relief

Dahan

2021

SSRN Journal

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This paper reveals a noticeable difference between a high degree of progressivity of incomerelated local property tax relief versus the proportional or regressive incidence of recognition tax relief. Recognition tax relief is tax relief given to specified social sectors which recognizes either their contributions to society or their identity-related suffering. Social groups that are characterized by political power and positive image following social construction process are expected to receive more favorable tax treatment regardless of their material needs. This study advances our understanding by showing that the degree of progressiveness of a tax system is shaped by social construction which implies a more complex trade-off between equality, efficiency and social construction in designing the tax system. JEL-Codes: H210, H220.

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Section: Introductionmentioning

confidence: 82%

Social Construction and the Progressivity of Local Tax Relief

Dahan

2021

SSRN Journal

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“…The property tax system in Israel is a non ad valorem tax. Instead of direct assessment, the property tax rate is based on the physical size of a property, location and existing use rather than on any discrete estimate of open market value [11]. In order to build a theoretical model, I still treat 'Arnona' as a quasi ad valorem tax, as [12] provide statistical analysis suggesting that property value is the most significant predictive variable of the tax.…”

Section: Land Ownership Centralization and Planning Process Decentral...mentioning

confidence: 99%

Sustainable Land Planning in Case of Decentralized Land Authorities

Dai¹

2021

Preprint

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The main focus of this paper is to analyze the effect of local public finance on spatial land use through economic models and empirical evidence from Israel. The theoretic models extends the Alonso-Mill-Muth model by incorporating local public finance. The first finding is that steady population growth provides a channel for land capitalization through the mechanism of long term land property right. This implies a possible conflict of interest if ownership of land leasing revenue and the ad valorem property tax are not consistent. The empirical section examines one of the implications derived from the models highlighting a possible inconsistency between central and local governments due to land ownership centralization. This causes local tax revenue inequality among Israeli municipalities. Statistical evidence shows that cities with a larger share business land use can generate more tax without assistance from the central government, and are therefore more fiscal independent. Fiscal status has a significant effect on the planning time of residential construction. Municipalities with higher local tax revenues have shorter planning time(higher probability of acceptance) conditional on the plan’s size and other features.

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“…In contrast to Jewish municipalities, the share of self-generated income among Arab local authorities is declining. However, government support per capita is on the rise and, in this respect, narrows the gap with Jewish local authorities (Portnov et al, 2001;Razin, 2002). Fig.…”

Section: The Israeli Local Property Tax Systemmentioning

confidence: 99%

“…It is not even possible to link such data to the criteria of taxation. Using aggregated data Portnov et al (2001) discovered that within the city of Be'er-Sheva the difference between the extremes of rates per sq. meter is only 20% while differences in socio-economic indicators exceed 100%.…”

Section: The Israeli Local Property Tax Systemmentioning

confidence: 99%