Fiscal cadastral systems reform: a case study of the general valuation project 2000 in the city of cape town (original) (raw)
Related papers
Fiscal Cadastral Reform and the Implementation of CAMA in Cape Town
SUMMARY The City of Cape Town has recently implemented Computer Assisted Mass Appraisal (CAMA) for the purposes of generating market values of approximately 550 000 residential properties in the Metropolitan City of Cape Town. Market valuations are used as the basis for property taxation at local government level, and are critical in the provision of income for effective provision of services and management of the City. This paper begins with a general introduction of current research projects which focus on this case study in particular, and on fiscal cadastral reform in general. It then describes the General Valuation Project 2000 (GV2000) and identifies the technology of CAMA as a primary element within a complex system of fiscal cadastral reform. The paper identifies the predominant forces which drove reform in the case of Cape Town, and the risks associated with it. The mechanisms used to resolve disputes, and their outcomes, are described. A description of the current status o...
Fiscal Decentralization, Revenue Assignment, And The Case For The Property Tax In South Africa
South Africa is at a crossroads in its decentralization policy. On the one hand, it has declared its intention to strengthen the fiscal powers of local governments. On the other hand, the institutional arrangement necessary to guarantee fiscal decentralization, the power to raise local revenues, has not yet been fully defined. Nor has a target been set for the vertical division of resources between the central and lower levels of government. The revenue dimension of fiscal decentralization in South Africa is the subject of this paper. In this paper, we describe the system of local government and local government finance in South Africa. We turn then to a discussion of the normative criteria for proper revenue assignment in an intergovernmental system, and to an evaluation of each of the major revenue sources. In that context, we consider the potential role of the property tax as a source of financing local government in South Africa.
New Century Local Government, 2013
When local governments impose property taxes, their primary objective is to fund their expenditure. However, the role of local government can be seen as far more than simply the provision of local public services. Local government can be an agent of its community, responsible for using its authority in a manner that creatively responds to local needs and thereby enhances the well-being of its area. This chapter asks if this interpretation of the role of municipalities has consequences for the manner in which they tax properties. South African municipalities have recently been equipped with a new property rates framework, which permits them to differentiate between categories of properties and to legislate for various kinds of property rates discounts. This framework presents a new approach to the use of property rating, by positioning it as an instrument with a stated developmental objective in addition to its revenue-raising function.
2019
Economists generally consider property taxes to be good taxes, and many countries are encouraged to increase and improve revenue collection from property taxes (Slack and Bird 2014). Beyond the economic efficiency of property taxation, research suggests that the political salience of both property taxes and municipal services may lend itself to the development of a fiscal social contract between citizens and the state (Jibao and Prichard 2015; McCluskey 2016; Slack 2011). The intrinsic reciprocity of the fiscal social contract in turn enables the growth of a ‘civic culture’ that encourages voluntary tax compliance (Besley 2019).
Introducing local property tax for fiscal decentralization and local authority autonomy
Charles Tiebout (1956), in his work “A Pure Theory of Local Expenditures”, provides a vision of the workings of the local public sector, acknowledging many similarities to the features of a competitive market, however omitting any references to local taxation. Contrary to other researchers’ claim that the Tiebout model and the theory of fiscal decentralization are by no means synonymous, this paper aims to expand Tiebout’s theory, by adding the local property tax in the context, introducing a fair, ad valorem property taxation system based on the automated assessment of the value of real estate properties within the boundaries of local authorities. Computer Assisted Mass Appraisal methodology integrated with Remote Sensing technology and GIS analysis is applied to local authorities’ property registries and cadastral data, building a spatial relational database and providing data to be statistically processed through Multiple Regression Analysis modeling. The proposed scheme accomplishes economy of scale using CAMA procedures on one hand, but also succeeds in making local authorities self-sufficient through a decentralized, fair, locally calibrated property taxation model, providing rational income administration.
2018
This paper presents an information system artifact for the fiscal aspect of land administration, a valuation information model for the specification of inventories or databases used in valuation for recurrently levied immovable property taxes. The information model is designed as an extension module of ISO 19152:2012 Land Administration Domain Model (LADM), which is an international standard for land administration. LADM Valuation Information Model is supposed to facilitate all stages of immovable property valuation, namely the identification of properties, assessment of properties through single or mass appraisal procedures, generation and representation of sales statistics, and dealing with appeals. Therefore, it enables the recording of data concerning the parties that are involved in valuation practices, property objects that are subject of valuation, their characteristics and other datasets used for and produced within single and mass appraisal procedures. Moreover, it enables development of valuation maps, and property price records needed to assess changes in property values, as addressed by the New Urban Agenda which is as an extension of 2030 Agenda for Sustainable Development for urban areas (cf. Clause 104). The ultimate purpose of this research is to provide governments with a common basis for the development of local or national databases, enable integration of valuation databases with cadastral databases, and guide the private sector in the development of information technology products.
Modelling Improvements to Property Tax Collection: The Case of Addis Ababa
2020
Efforts to reform property tax systems in African cities tend to focus more on how to value properties for purposes of tax assessment than on how to better collect taxes due. The same is true of the literature on property tax reform. There is however reason to believe that a greater initial focus on improving collection would be more productive. In this paper, we explore how this might be done in Addis Ababa. This would involve adopting a principle already employed in several African cities: area-based property valuation. This involves linking the tax assessments of individual properties closely to assessments, neighbourhood by neighbourhood, of the quality and density of the available basic public infrastructure and the quality of the built environment. We demonstrate how to identify and map neighbourhoods for this purpose.
Acta Scientiarum. Technology
This study addresses Property Value Map updating, specifically when it comes to the absence of methods that allows for efficiency, agility and transparency in estimating property value in Brazilian municipalities. In many cities, the Property Value Map is not being updated due to use of complicated methodologies that require several people and a great amount of time to be applied. For the cities, all properties have a significant importance, since they provide financial resources for city maintenance, considering that the value of the property serves as reference for the Municipal Property Tax and the Property Conveyance Tax to be collected. A failure to update the Property Value Map has been favoring the establishment of a condition of maladjustments in the sphere of public administration concerning property value, as well as tax collection, triggering situations intrinsic to this condition, such as the updating need for promotion of social equity and fair taxation. The present inv...
Supporting Fiscal Aspect ofLand Administration Through a LADM-Based Valuation Information Model
This paper presents an information system artifact for the fiscal aspect of land administration, a valuation information model for the specification of inventories or databases used in valuation for recurrently levied immovable property taxes. The information model is designed as an extension module of ISO 19152:2012 Land Administration Domain Model (LADM), which is an international standard for land administration. LADM Valuation Information Model is supposed to facilitate all stages of immovable property valuation, namely the identification of properties, assessment of properties through single or mass appraisal procedures, generation and representation of sales statistics, and dealing with appeals.Therefore, it enables the recording of data concerning the parties that are involved in valuation practices, property objects that are subject of valuation, their characteristics and other datasets used for and produced within single and mass appraisal procedures. Moreover, it enables development of valuation maps, and property price records needed to assess changes in property values, as addressed by the New Urban Agenda which is as an extension of 2030 Agenda for Sustainable Development for urban areas (cf. Clause 104). The ultimate purpose of this research is to provide governments with a common basis for the development of local or national databases, enable integration of valuation databases with cadastral databases, and guide the private sector in the development of information technology products.
How Local Authorities Can Exploit the Potential for Effective Property Taxes: A Case Study of Harare
2018
This paper explores administrative challenges that developing countries face in property tax administration. It is internationally acknowledged that local authorities play a vital role in enhancing a country’s economic growth and provision of public goods. Their activities rely on revenue collection. It is therefore in the public interest and the interest of all governments to support their activities. The author identified that the main source of revenue for the City of Harare is property tax. Property tax has the potential to perform better given the boom in urban population. Despite the potential of property tax, it has not been able to generate more revenue because local authorities lack capacity and face a number of challenges. This paper argues that, in addition to solutions intended to resolve the usual technical and political difficulties associated with property taxation, it is crucial for Harare to improve systems for property taxation. There is a need to invest in infor...