Property Tax in BRICS Megacities (eBook)

Marco Salm pursued his doctorate in public finance at German University of Administrative Sciences, Speyer, Germany. He holds a master’s degree in economics from the University of Heidelberg in Germany.

Preface 6
References 7
Contents 8
List of Figures 10
List of Tables 11
Chapter 1: Introduction 14
1.1 Research Approach 18
1.2 Range of Megacities Considered 20
1.3 Fundamental Terminology 22
References 24
Chapter 2: Theoretical Insight on the Property Tax 26
2.1 Theoretical Background 26
2.1.1 The Property Tax as Decentralized Tax 26
2.1.2 Incidence of the Property Tax 31
2.1.3 Local Finance Criteria for a Rational Decentralized Tax 36
2.2 Stylized Facts of the Property Tax 38
2.2.1 Property Tax Base 39
2.2.2 Exemptions and Exclusions 39
2.2.3 Property Tax Assessment 40
2.2.4 Tax Rates 43
2.2.4.1 Uniform Versus Differential Tax Rates 44
2.2.4.2 Progressive, Regressive or Proportional Tax Rate Structure 44
2.2.5 Identification, Assessment, Billing, Collection, Enforcement 45
2.2.5.1 Discovery and Identification 46
2.2.5.2 Assessment 46
2.2.5.3 Billing, Collection and Enforcement 48
2.2.5.4 Appeal Mechanism 48
2.2.6 Property Tax Performance Ratios 49
2.2.7 Revenue Mobilizing Model 49
References 51
Chapter 3: Property Taxes Within the BRICS States 54
3.1 Country Profiles 54
3.1.1 Brazil 56
3.1.2 Russia 58
3.1.3 India 59
3.1.4 China 61
3.1.5 South Africa 63
3.2 Case Studies: Megacities in Brazil, India, and China 64
3.2.1 Brazil 64
3.2.1.1 Is the Tax System Equitable and Efficient? 66
3.2.1.2 Taxes on Property in Brazil: An Overview 69
3.2.1.3 What Are the Operational Facts of the Property Tax? 72
Rio de Janeiro 72
Political Decisions 73
Administrative Practices 77
São Paulo 81
Political Decisions 82
Administrative Practices 87
3.2.1.4 What Is the Administrative Performance? 90
3.2.1.5 Is It a Rational Local Tax? 96
3.2.1.6 What Are Current Reform Initiatives? 101
3.2.1.7 Critical Summary 101
3.2.1.8 Reform Options 106
Metropolitan Governance Structure 106
Informality 107
3.2.2 India 109
3.2.2.1 Is the Tax System Equitable and Efficient? 111
3.2.2.2 Taxes on Property in India: An Overview 118
3.2.2.3 What Are the Operational Facts of the Property Tax? 120
Greater Bangalore Municipal Corporation 120
Political Decisions 121
Administrative Practices 125
Municipal Corporation of Greater Mumbai 128
Political Decisions 129
Administrative Practices 132
3.2.2.4 What Is the Administrative Performance? 134
3.2.2.5 Is It a Rational Local Tax? 141
3.2.2.6 What Are Current Reform Initiatives? 145
3.2.2.7 Critical Summary 147
3.2.2.8 Reform Options 152
3.2.3 China 154
3.2.3.1 Is the Tax System Equitable and Efficient? 155
3.2.3.2 Taxes on Property in China: An Overview 160
3.2.3.3 What Are the Operational Facts of the Property Tax? 161
Political Decisions 162
Administrative Practices 163
3.2.3.4 What Is the Administrative Performance? 165
3.2.3.5 Is It a Rational Local Tax? 165
3.2.3.6 What Are Current Reform Initiatives? 168
3.2.3.7 Critical Summary 171
3.2.3.8 Reform Options 174
3.3 Comparative View on Stylized Facts of the Property Tax in BRICS 177
3.3.1 Tax Policy Decisions 177
3.3.2 Administrative Practices 183
3.4 Future Significance of Property Tax in a Transitional Setting 186
References 195
Chapter 4: Summary and Way Forward 199
4.1 Similar Megacities 200
4.2 Different Tax Designs 202
4.2.1 Policy Decisions 206
4.2.2 Administrative Practices 211
4.3 Way Forward 214
References 218
Annex 220
A.1 Taxes on Property in Brazil 220
A.2 Taxes on Property in Russia 222
A.3 Taxes on Property in India 223
A.4 Taxes on Property in China 225
A.5 Taxes on Property in South Africa 228
A.6 Local and Central Revenue and Expenditure Assignments in China 230
A.7 Development of Local Tax Revenues in Sample Cities, 1999-2013 231