房产税与房地产企业文献综述及外文文献.docx
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房产税与房地产企业文献综述及外文文献
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关于该选题的外文文献、文献综述
一、外文文献
PROPERTYTAXEXPENDITURES:
CLASSIFIEDPROPERTYTAXSYSTEMS
TerriA
ABSTRACT
Thispaperfocusesonthetaxexpendituresarisingfrompropertytaxpoliciesthatapplydifferent(non-zero)assessmentratiosortaxratestorealpropertywiththeprimaryobjectiveofredistributingthetaxburdenbytaxingdifferentclassesofrealpropertyatdifferenteffectiverates.Inadditiontoreducingthepropertytaxburdenonfavoredclassesofproperty,suchclassifiedpropertytaxsystemscanresultinreducedtaxrevenues.AnoverviewofthevariouspropertytaxclassificationsystemsusedintheUnitedStatesisprovidedalongwithtaxexpenditureestimatesreportedbyseveralstates.InacasestudyoflocalgovernmentsinTennesseeweprovideestimatesoftwodifferentmeasuresoftaxexpenditures:
Therevenuelosttocountiesandmunicipalitiesresultingfromaswitchfromauniformtoaclassifiedpropertytax,andtheshiftintaxburdenthatresultfromarevenue-neutralswitchfromuniformtoclassifiedassessment.
1.INTRODUCTION
Thepropertytaxisanadvalortaxbutmoststatesdonottaxthefullmarketvalueofproperty.Instead,somestatestaxauniformpercentageorfractionofactualmarketvalue.Forexample,Connecticutassessesallpropertyat70%ofmarketvalue,orusesanassessmentratio(ratioofassessedtomarketvalue)of0.7.Similarly,theassessmentratiois0.35inNevada,1/3inNewMexico,and0.20inArkansas.1Manystatesspecifydifferentassessmentratiosbasedontheuseoftheproperty(residential,agricultural,commercial,industrial)ortypeofproperty(land,improvements,personalproperty).
Theapplicationofdifferentassessmentratiostodifferentclassesofpropertyresultsindifferenteffectivetaxrates,whichexpresstaxasapercentageofmarketvalue.Iftheassessedvalueofallpropertyistaxedatthesamerate,thosewithlowerassessmentratioswillpayalowereffectivetaxrate.Somestatesachievethesameresultbyapplyinguniformassessmentratiostoallpropertiesbuttaxingthematdifferentialrates.Stillothersthatassesspropertyuniformlyandapplyuniformtaxratesachievedifferenteffectivetaxratesbyprovidingtaxreliefthatreducesthetaxowedonsomeproperties.
Anysystemthattaxesdifferentclassesofpropertyatdifferenteffectiveratesisreferredtoasaclassifiedpropertytax.Accordingtothisbroaddefinition,everystate'spropertytaxcouldbedescribedasclassified.Clearlythepartialorfullexemptionofcertaintypesofpropertyconstitutesclassification.Afullexemptionorexclusionfromthetaxbaseisequivalenttoazeroassessmentratioorazerotaxrate.Similarly,preferentialassessmentspracticesfrequentlyaffordedagriculturalproperties,timber,andopenspace,areintend-edtolowertheeffectivetaxrateonthesepropertiesandhenceconstituteclassification.Exemptions,preferentialassessments,andothertypesofreliefpro-gramsareconsideredseparatelyinotherpapersinthisvolume.Herewefocusonpropertytaxpoliciesthatapplydifferent(non-zero)assessmentratiosortaxratestorealpropertywiththeprimaryobjectiveoftaxingdifferentclassesofrealpropertyatdifferenteffectiverates.2Suchsystemsarereferredtohereasformallyclassified.
Theobjectiveofthispaperistoexaminethetaxexpendituresofclassifiedpropertytaxsystems.Twomeasuresoftaxexpendituresareconsidered:
Therevenuelosttocountiesandmunicipalitiesresultingfromaswitchfromauniformtoaclassifiedpropertytax,andtheshiftintaxburdenthatresultfromarevenueneutralswitchfromuniformtoclassifiedassessments.Webegin,inthenextsection,withanoverviewofthevariouspropertytaxclassificationsystemsusedintheUnitedStates.Sectionthreesummarizesexistingresearchontheimpactofclassificationonthedistributionofthetaxburden.Section4definestaxexpendituresforaclassifiedpropertytaxanddescribestheeffortsbyvariousstatestomeasurethem.InsectionfiveweprovideestimatesoftwodifferentmeasuresoftaxexpendituresforseverallocalgovernmentsinTennessee.Finallysectionsixconcludeswithacomparisonofresultsandrecommendationsforfurthertaxexpenditureresearch.
2.ANOVERVIEWOFTAXCLASSIFICATIONSYSTEMSINTHEUNITEDSTATES
ThefirstformallyclassifiedpropertytaxsystemintheUnitedStateswasinstitutedinMinnesotain1913.Today,27statesandtheDistrictofColumbiahaveformallyclassifiedrealpropertytaxsystemsorallowclassificationasalocaloption.Whilethereisconsiderablevariationintheseprograms,mostgiveagriculturalandresidentialpropertiesfavoredorpreferentialtreatment,usuallyforthepurposeofprovidingtaxreliefand/ortoencouragetheseuses.
Table1identifiesthestateswithformalclassifiedrealpropertytaxsystemsin2012andindicatesthenumberofclassesofrealpropertyincluded.Therangeofassessmentratiosforthosestatesthatapplydifferentratiostodifferentpropertyclassesarereportedincolumn3andtherangeofstatutorytaxratesforthosestatesthattaxdifferentclassesofpropertyatdifferentratesarereportedincolumn4.InnineteenstatesdifferentassessmentratiosareappliedtodifferentclassesofpropertyandintenstatesplusD.C.propertyisassesseduniformlybuttaxedatdifferentrates.NewYorkCitydoesbothwhileMinnesotaappliesdifferentassessmentratiosforlocaltaxesanddifferenttaxratesfortheirstatepropertytax.
Minnesotadefinesthelargestnumberofrealpropertyclasses,11,followedbyMauiwith10classes,Montanawith9,Arizonawith8andKansaswith6.Attheotherendofthespectrum,sixstatesdividepropertyintoonlytworatioorrateclasses.GeorgiaandNebraskasingleoutagriculturalpropertytobeassessedatalowerfractionthanotherpropertywhileUtah,VermontandRhodeIslandgiveresidentialpropertypreferentialtreatment.
Amongthestatesthatapplydifferentassessmentratios,agriculturalandresidentialpropertiesareusuallyassessedatlowerratesthanotherproperties.Georgia,MissouriandNebraskaallassessagriculturalpropertyatalowerratethanresidentialwhilethereverseistrueinArizona,Colorado,Iowa,andKansas.Twostatesdistinguishbetweenlandandimprovements.InKansas,agriculturalimprovementsareassessedatalowerratethanagriculturallandwhileLouisianaassessescommercialbuildingsatahigherratethanland.AlthoughallpropertyisassesseduniformlyontheislandofKauai,landisgenerallytaxedatalowerratethanimprovementsexceptforagriculturalandowner-occupiedresidentialpropertiesforwhichimprovementsaretaxedatalowerratethanland.SeveralcitiesinPennsylvaniaalsotreatlandandimprovementsdifferently,buttheytaxlandatahigherratethanimprovements.
Minnesotahasoneofthemostcomplexclassificationsystems.Theassessmentratiovariesaccordingtonotonlytheclassificationofthepropertybutalsoitsestimatedmarketvalue.Forexample,theassessedvalueofresidentialhomesteadsis1.0%ofthefirst$500,000ofmarketvalueand1.25%ofvalueinexcessof$500,000.Similardefinitionsapplytootherclassesofrealproperty.Incontrast,Utah'sclassificationsystemsinglesoutonlyresidentialpropertyandassessesitat55%ofmarketvalue,whileallotherpropertyisassessedatfullmarketvalue.
InIllinoisclassifiedassessmentratiosareanoptionforcountieswithpopulationsgreaterthan200,000.NinecountiescurrentlyqualifybutonlyCookCountyclassifies.CookCountydefinesessentiallytworegularclassesofproperty,residential/farmandcommercial/industrialandfiveincentiveclassesincludingnewdevelopment,redevelopment,andlow-incomehousing.Theincentiveclassesbenefitfromlowerassessmentratiosthatareoflimitedduration,usually10years,afterwhichtheygraduallyincrease,overathreeyearperiod,tothelevelforsimilarlyclassedproperty.
NewYorkCityistheonlyjurisdictioninNewYorkthathasaclassifiedpropertytaxanditisuniqueinthatitusesdifferentassessmentratiosanddifferenttaxrates.Homesareassessedat6%ofmarketvaluewhileallotherpropertyisassessedat45%.Thendifferenttaxratesapplytoeachofitsfourclassesofproperty.
Amongthestatesthatapplydifferentstatutorytaxratestodifferentpropertyclasses,residentialproperty,especiallyowner-occupied,isusuallytaxedatthelowestratewithagriculturalpropertynext,andcommercial/industrialpropertytaxedatthehighestrates.SouthDakotataxesagriculturalpropertyatthelowestratebutbothresidentialandagriculturalaretaxedatmuchlowerratesthanotherproperty.NewYorkCityistheonlyplacethattaxesresidentialpropertyatahigherrate(18.205%)thanallotherproperty.Here,commercialandindustrialpropertyistaxedatthelowestrate(10.152%).However,sinceNewYorkCityalsoassessesresidentialpropertyatamuchlowerpercentageofmarketvalue(6%)thanotherproperty(45%),theeffectivetaxrateonresidentialproperty(1.09%)ismuchlowerthanthatoncommercialandindustrialproperty(4.57%).
InHawaii,eachislandchoosesitsownclassificationandtaxrates.Mauihasdefined10classesofpropertyandtaxesthemallatdifferentratesrangingfrom0.25%forhomeownerpropertyto1.5%ontime-shareproperties.Honolulutaxesallresidentialpropertyat0.35%,lessthanathirdofthe1.24%rateoncommercial,industrial,hotelandresortproperty.Kauaitaxestheimprovementportionofowner-occupiedresidentialpropertyattherateof0.344%andthelandportionatthehigherrateof0.40%whileforcommercial,industrialandresortpropertytheimprovemen