Property tax

A property tax or millage rate[1] is an ad valorem tax on the value of a property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region or a municipality. Multiple jurisdictions may tax the same property. This tax can be contrasted to a rent tax which is based on rental income or imputed rent, and a land value tax, which is a levy on the value of land, excluding the value of buildings and other improvements.

Under a property-tax system, the government requires or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value.

Types

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. Real property (also called real estate or realty) is the combination of land and improvements.

Forms of property tax vary across jurisdictions. Real property is often taxed based on its class. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of property classes are residential, commercial, industrial and vacant real property.[2] In Israel, for example, property tax rates are double for vacant apartments versus occupied apartments.[3]

A special assessment tax is sometimes confused with property tax. These are two distinct forms of taxation: one (ad valorem tax) relies upon the fair market value of the property. The other (special assessment) relies upon a special enhancement called a "benefit" for its justification.

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). To calculate the property tax, the authority multiplies the assessed value by the mill rate and then divides by 1,000. For example, a property with an assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year.[4]

Jurisdictions

GDP per capita PPP vs property taxes 2016
General government revenue, in % of GDP, from property taxes. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 44 % by tax revenue.

Property classes, tax rates, assessment rules and valuations vary by jurisdiction.

Australia

Australian property is taxed at both the state and council (local municipal) level. Taxes are payable by property owners - there is no property tax charged to renters.

A state tax commonly called "stamp duty" is assessed when is property is purchased or transferred. It is typically around 5% of the purchase price, payable by the purchaser. Other transfer charges may also apply, including special fees for investors from overseas.[5]

"Land tax" - also a state tax - is assessed every year on a property's value. Most Australians do not pay land tax, as most states provide a land tax exemption for the primary home or residence. Depending on the state, surcharge tax rates can apply to foreign owners.[6]

"Council rates" is a municipal tax levied by local government. This is assessed each year on a property's value. Council rates are around $1300 per annum for an average Australian household.[7]

Brazil

Brazil is a Federation Republic, and its federated entities (internal States and Municipalities), as well as the Federal government, levy property taxes. They are all declared in the Federal Constitution.

These are the current property taxes:

  • Tax on Rural Territorial Property – federal: levied upon real state property on rural areas;
  • Tax on Urban Territorial Property – municipal: levied upon real state property on urban areas;
  • Tax on Motorized Vehicles Property – state: levied upon the property of cars, trucks, motorcycles, and the likes;
  • Tax on Big Fortunes – federal: it is declared on the Federal Constitution, but there is still no regulation defining its incidence.

Canada

Many provinces levy property tax on real estate based upon land use and value. This is the major source of revenue for most municipal governments. While property tax levels vary across municipalities, a common property assessment or valuation criteria is laid out in provincial legislation. The trend is to use a market value standard for valuation purposes with varying revaluation cycles. Multiple provinces established an annual reassessment cycle where market activity warrants, while others have longer periods between valuation periods.

Calculating Individual Property Taxes

In Ontario, for most properties (e.g., residential, farms), property taxes can be calculated by multiplying the phased-in assessment indicated on the Property Assessment Notice by the tax rate.

The municipal tax rate x phased-in assessment for the particular taxation year = municipal portion of tax.

The county/regional tax rate x phased-in assessment for the particular taxation year = county/regional portion of tax.

The education tax rate x phased-in assessment for the particular taxation year = education portion of tax.

The municipal portion of tax + county/regional portion of tax + education portion of tax = Total Property Tax.

In some cases (e.g., commercial, industrial, multi-residential properties), the Province or municipality may implement measures that affect the actual taxes paid on a property.

Land Transfer Tax

Land transfer tax is a provincial tax levied when purchasing a home or land in Canada. All provinces have a land transfer tax, except Alberta and Saskatchewan. In most provinces the tax is calculated as a percentage of the purchase price. In Toronto there is an additional municipal tax.

Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first-time homebuyers. [8][9]

In British Columbia the property transfer tax is equal to one percent tax on the first $200,000 of the purchase price, two percent on the remaining amount up to $2 million and three percent on the rest.[10] An additional 15% tax that applies only to non-resident foreign home buyers in Greater Vancouver started on August 2, 2016. The definition of foreign buyer includes international students and temporary foreign workers. Anti-avoidance measures include fines of $100,000 for individuals and $200,000 for corporations.[11]

The First Time Home Buyers Program is a program by the BC government that offers qualifying first-time homebuyers a reduction or elimination of the property transfer tax. It can be used in conjunction with the B.C. Home Owner Mortgage and Equity Partnership.[12]

The First Time Home Buyers Tax Credit is also available in Ontario, which offers First Time Home Buyers a 750 dollar tax Rebate. In 2017 the Ontario Government also released the Land Transfer Tax Rebate, which allowed for up to 4,000 dollar rebate - ensuring that first time home buyers of homes valued under 368,000 dollars would not pay land transfer tax.[13]

The Newly Built Home Exemption is a program that reduces or eliminates the property transfer tax on new homes. The amount is limited to $13,000 for qualifying individuals who must be either a Canadian citizen or a permanent resident. The property purchased must be located in British Columbia, have a fair market value of $750,000, be smaller than 1.25 acres and be used as a principle residence. It can be used in conjunction with the B.C. Home Owner Mortgage and Equity Partnership.[14]

Chile

The land property tax, called "territorial tax" or "contribution", is an annual amount paid quarterly by the property's owner. It is determined as a percentage of the property's "fiscal value", which is calculated by the Internal Revenue Service, based on the property's land and built area, construction materials, age and use. The fiscal value, which is usually much lower than the market value, may be disputed by the owner. The annual levy varies between 1 and 2% of this value, depending on the property's use (residential, agricultural or commercial). Residential properties valued below US$40K (as of 2013) are not taxed; those above that threshold are taxed only on the amount exceeding US$40K.[15] Revenues go to the municipality administering the property's commune.[16] All municipalities contribute a share of the revenue to a "common municipal fund" that is then redistributed back to municipalities according to a their needs (commune's poverty rate, etc.).[17][18] Additionally, municipalities charge a quarterly trash collection tax, which is often paid together with the territorial tax (if applicable).

Egypt

The law imposes a tax on each property. Public buildings are excluded (such as government buildings), as are religious buildings (mosques and churches). Families owning private properties worth up to LE 2 million ($290,000) are exempt. commercial stores with an annual rent value over LE 1,200 are not exempt.[19]

Greece

Greece has a Municipal and a Government property tax. The municipal property tax (ΤΑΠ/ΔΤ/ΔΦ) is included in electricity bills and incorporates, among others, charges for street cleaning and lighting. The Government property tax (ENFIA) is a combination of the individual asset's tax based upon floor-area and a progressive real-estate wealth tax per individual which is based on the estimated net-worth of all properties and can reach 2%.

Hong Kong

In Hong Kong, the "property tax" is not an ad valorem tax; it is actually an income tax.

According to HK Inland Revenue Ordinance IRO s5B, all property owners are not be subject to this tax unless they received a consideration, like rental income for the year of assessment. The property tax is computed on the net assessable value at the standard rate. The period of assessment is from 1 April to 31 March.

Net assessable value

The formula is:

Net assessable value = 80% of Assessable value.
HK property tax payable = Net assessment value X Property tax standard rate
Assessable value = Rental income + Premium + (Rental bad debt recovered — Irrecoverable rent) – Rates paid by owner.

India

Property tax or 'house tax' is a local tax on buildings, along with appurtenant land. It is an imposed on the Possessor (not the custodian of property as per 1978, 44th amendment of the constitution). It resembles the US-type wealth tax and differs from the excise-type UK rate. The tax power is vested in the states and is delegated to local bodies, specifying the valuation method, rate band, and collection procedures. The tax base is the annual rental value (ARV) or area-based rating. Owner-occupied and other properties not producing rent are assessed on cost and then converted into ARV by applying a percentage of cost, usually four percent. Vacant land is generally exempt. Central government properties are e exempt. Instead a 'service charge' is permissible under executive order. Properties of foreign missions also enjoy tax exemption without requiring reciprocity. The tax is usually accompanied by service taxes, e.g., water tax, drainage tax, conservancy (sanitation) tax, lighting tax, all using the same tax base. The rate structure is flat on rural (panchayat) properties, but in the urban (municipal) areas it is mildly progressive with about 80% of assessments falling in the first two brackets.[20]

Ireland

A Local Property Tax came into effect in Republic of Ireland on 1 July 2013, and is collected by the Revenue Commissioners. The tax is on residential properties. The property owner is liable (though in the case of leases over twenty years, the tenant is liable). The revenue funds the provision of services by local authorities. Such services currently include public parks, libraries, open spaces and leisure amenities, planning and development, fire and emergency services, maintenance and street cleaning and lighting.

The tax is based upon market value, taxed via a system of market bands. The initial national central rate of the tax is 0.18% of a property's value up to €1 million. Properties valued over €1 million are assessed 0.25% on the excess. From 1 January 2015, local authorities are able to vary LPT rates -/+ 15% of the national central rate.

In the case of properties valued over €1 million, no banding applies – 0.18% is charged on the first €1 million (€1,800) and 0.25% on the balance. The government estimates that 85% to 90% of all properties fall within the first five taxation bands.[21][22]

Jamaica

This tax is paid annually and is based on a percentage of the unimproved value of a property.

Lithuania

The tax period for a property tax is a calendar year. Property tax rate ranging from 0.3% to 1% the tax value of real estate is determined by the municipality.

Since January 1st 2015 if the persons property value is higher than 220 000 euros, 0.5 per cent of property tax is applied for exceeding amount.

Luxembourg

Property tax in Luxembourg is calculated on the basis of the property's "unitary value" determined by tax authorities and levied by the communes. The tax is calculated as property unitary value * assessment rate * communal rate. The assessment rate is determined by the legislator and generally ranges from 0.7% to 1%. The communal rate is set by the communal authority and varies from 120% to 900% depending on the municipality.

Luxembourg has minimal property taxes compared to its neighbours in Benelux or in the European Union. It amounts to more or less €150 for a €500 000 apartment in Luxembourg City.[23][24]

Netherlands

Property tax (Dutch: Onroerendezaakbelasting (OZB)) is levied on property on a municipal basis. Only the owners of residential property and people who rent/own commercial space are taxed. People who rent a home do not pay property tax. Municipalities combine their property taxes with a tax for garbage collection and for the sewer system. Owners and users of property and land also pay taxes based on the value of property to the water boards for flood protection and water and wastewater treatment ("waterschapsbelasting"). A percentage of the value of a house ("huurwaardeforfait") is added to the income of the owner, so the owner of a house pays more income tax. All property-related taxes are based on the value of the house estimated by the municipality.

United Kingdom

In the UK the ownership of residential property or land is not taxed, a situation almost unique in the OECD.[25][26][27] Instead, the Council Tax is usually paid by the resident of a property, and only in the case of unoccupied property does the owner become liable to pay it (although owners can often obtain a discount or an exemption for empty properties).[28]

Her Majesty's Revenue and Customs (HMRC) guidelines state:

"Council Tax is a tax on property. In principle it may be an allowable deduction in those instances where other property-based expenses are deductible."[29]

The Valuation Tribunal Service states that:

"The tax is a mix of a property tax and a personal tax. Generally, where two or more persons reside in a dwelling the full tax is payable. If one person resides in the dwelling then 75% is payable. An empty dwelling attracts only a 50% charge unless the billing authority has made a determination otherwise."[30]

There have been a lot of property tax changes since the introduction of the 2015/16 budget. Changes to Section 24 mortgage interest relief, removal of the 10% wear & tear allowance, and the maintenance of high rates of Capital Gains Tax (CGT). These changes have resulted in UK landlords paying a lot more tax than previously.

The Council Tax depends on the value of the property, but is not calculated as a simple percentage. Instead, the property is allocated to a Council Tax band, (9 in England and 8 in Scotland and Wales). Valuation is carried out by the Valuation Office Agency under the auspices of Her Majesty's Revenue and Customs (HMRC).[31][32]

United States

In the United States, property tax on real estate is usually levied by local government, at the municipal or county level. Rates vary across the states, between about 0% and 4% of the home value.[33] The assessment is made up of two components—the improvement or building value and the land or site value. The property tax is the main tax supporting local education, police/fire protection, local governments, some free medical services and most of other local infrastructure. Many state and local jurisdictions add personal property taxes. (See exceptions below.)

Places without property tax

Africa

Europe

Oceania

Asia

United States

In Alaska, "...only a small portion of the land mass is subject to a property tax. ...only 24 municipalities in Alaska (either cities or boroughs) levy a property tax."[42] There is no tax on the private land in American Samoa, the Territory of Palmyra Island or Kingman Reef in the Pacific Ocean insular areas.[43]

See also

References

  1. ^ "Millage Rate" at Investopedia.
  2. ^ "Real Property Tax Rates – otr".
  3. ^ Bousso, Nimrod (20 May 2013). "Interior Minister Approves Doubling Property Taxes on Vacant Israeli Apartments" – via Haaretz.
  4. ^ "Connecticut Office of Policy Management: Mill Rates". Retrieved 2010-10-04.
  5. ^ Office, Australian Taxation. "State and territory taxes". www.ato.gov.au. Retrieved 2018-01-08.
  6. ^ content_publisher (2016-11-23). "Land tax surcharge". www.revenue.nsw.gov.au. Retrieved 2018-01-08.
  7. ^ Australia, Local Government Association of South. "Council Rates". Retrieved 2018-01-08.
  8. ^ "Land Transfer Tax Calculator Canada – Rates & Rebates".
  9. ^ "Land Transfer Tax".
  10. ^ "B.C. to hit foreign buyers of Metro Vancouver homes with 15% property tax".
  11. ^ "Ontario considers following B.C. on taxing foreign real estate investors".
  12. ^ "First Time Home Buyers' Program – Housing Action".
  13. ^ "Land Transfer Tax Refunds for First-Time Homebuyers". www.fin.gov.on.ca.
  14. ^ "Newly Built Home Exemption – Housing Action".
  15. ^ "DFL-1 16-DIC-1998 MINISTERIO DE HACIENDA – Ley Chile – Biblioteca del Congreso Nacional".
  16. ^ "Preguntas Frecuentes de Bienes Raíces".
  17. ^ [1]
  18. ^ "REGLAMENTO PARA LA APLICACION DEL ARTICULO 38 DEL DECRETO LEY N° 3.063, DE 1979, MODIFICADO POR EL ARTICULO 1° DE LA LEY N° 20.237" (PDF).
  19. ^ "Egypt's amended property tax law to take effect in July: Finance ministry – Economy – Business – Ahram Online". english.ahram.org.eg. Retrieved 2017-01-27.
  20. ^ Datta, Abhijit. (1992). Local Government Finances: Trends, Issues and Reforms, in Bagchi, Amaresh. et al. (Eds.), State Finances in India, New Delhi: Vikas Publishing House for the NIPFP...
  21. ^ Revenue Commissioners (Ireland) – Local Property Tax (LPT), Frequently Asked Questions (5 December 2012)
  22. ^ Budget 2013 (Ireland) – ANNEX B – Local Property Tax (LPT) (5 December 2013)
  23. ^ "Property Tax | Le Gouvernement du Grand Duché de Luxembourg". www.guichet.public.lu. Retrieved 2016-02-22.
  24. ^ "Luxembourg Tax Smart Card". www.nexvia.lu/#!tax-smart-card/glc4v. Retrieved 2016-02-22.
  25. ^ editor, Patrick Wintour Political (7 December 2015). "Labour has 'moral mission' to tackle inequality, says Tristram Hunt" – via The Guardian.
  26. ^ "Opinion".
  27. ^ "The Real Hope for Home Ownership".
  28. ^ "Council Tax – GOV.UK".
  29. ^ "BIM46840 – Specific deductions: rent and rates: Council Tax". www.hmrc.gov.uk. Retrieved 2015-09-18.
  30. ^ "Council Tax Guidelines". Archived from the original on 3 October 2015.
  31. ^ "Council Tax bands and rates | Westminster City Council". www.westminster.gov.uk. Retrieved 2015-09-18.
  32. ^ "Council tax bands and rates – guide | Lambeth Council". www.lambeth.gov.uk. Retrieved 2015-09-18.
  33. ^ "The Tax Foundation — Property Taxes on Owner-Occupied Housing by State, 2004–2009". 2009. Retrieved 2010-10-04.
  34. ^ "Wayback Machine" (PDF). 6 January 2014.
  35. ^ "Wayback Machine" (PDF). 11 January 2014.
  36. ^ "Wayback Machine" (PDF). 11 January 2014.
  37. ^ eTax, Nordisk. "Faroe Islands".
  38. ^ "British Expat Forum • View forum – Malta".
  39. ^ "Palau (US department of State)".
  40. ^ "A hidden paradise with no income tax or property tax… – Sovereign Man".
  41. ^ "Why Invest in the Cook Islands – is it that good – really?".
  42. ^ "Alaska Tax Facts". Alaska Department of Commerce, Community and Economic Development: Office of the State Assessor. Retrieved May 9, 2017.
  43. ^ "GAO/OGC-98-5 – U.S. Insular Areas: Application of the U.S. Constitution". U.S. Government Printing Office. November 7, 1997. Retrieved May 9, 2017.

Further reading

1922 Swiss referendums

Five referendums were held in Switzerland during 1922. The first three were held on 11 June on the process of obtaining Swiss citizenship, on expelling foreigners and on the eligibility of federal officials to stand in National Council elections. All three were rejected. The fourth was held on 24 September on an amendment of the criminal law regarding constitutional and domestic security, and was also rejected. The fifth was held on 3 December on introducing a one-off property tax, and was rejected by a wide margin.

1978 California Proposition 13

Proposition 13 (officially named the People's Initiative to Limit Property Taxation) was an amendment of the Constitution of California enacted during 1978, by means of the initiative process. The initiative was approved by California voters on June 6, 1978. It was declared constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn, 505 U.S. 1 (1992). Proposition 13 is embodied in Article XIII A of the Constitution of the State of California.The most significant portion of the act is the first paragraph, which limited the tax rate for real estate:

Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.

The proposition decreased property taxes by assessing

values at their 1976 value and restricted annual increases of assessed value of real property to an inflation factor, not to exceed 2 percent per year. It also prohibited reassessment of a new base year value except in cases of (a) change in ownership, or (b) completion of new construction. These rules apply equally to all real estate, residential and commercial—whether owned by individuals or corporations.

The other significant portion of the initiative is that it requires a two-thirds majority in both legislative houses for future increases of any state tax rates or amounts of revenue collected, including income tax rates. It also requires a two-thirds vote majority in local elections for local governments wishing to increase special taxes.

Proposition 13 received an enormous amount of publicity, not only in California, but throughout the United States. Passage of the initiative presaged a "taxpayer revolt" throughout the country that is sometimes thought to have contributed to the election of Ronald Reagan to the presidency during 1980. However, of 30 anti-tax ballot measures that year, only 13 measures passed.A large contributor to Proposition 13 was the sentiment that older Californians should not be priced out of their homes through high taxes. The proposition has been called the "third rail" (meaning "untouchable subject") of California politics, and it is not popular politically for lawmakers to attempt to change it.

2000 California Proposition 39

Proposition 39 was an initiative state constitutional amendment and statute which appeared on the November 7, 2000, California general election ballot. Proposition 39 passed with 5,431,152 Yes votes, representing 53.4 percent of the total votes cast. Proposition 39 was essentially a milder version of Proposition 26, which would have ended the Proposition 13 supermajority vote requirement altogether (imposing a simple majority vote requirement), but was defeated with 3,521,327 "Yes" votes, representing 48.7 percent of the total votes cast, in the March 7, 2000, California primary election.

Ad valorem tax

An ad valorem tax (Latin for "according to value") is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT). An ad valorem tax may also be imposed annually, as in the case of a real or personal property tax, or in connection with another significant event (e.g. inheritance tax, expatriation tax, or tariff). In some countries a stamp duty is imposed as an ad valorem tax.

General obligation bond

A general obligation bond is a common type of municipal bond in the United States that is secured by a state or local government's pledge to use legally available resources, including tax revenues, to repay bond holders.

Most general obligation pledges at the local government level include a pledge to levy a property tax to meet debt service requirements, in which case holders of general obligation bonds have a right to compel the borrowing government to levy that tax to satisfy the local government's obligation. Because property owners are usually reluctant to risk losing their holding due to unpaid property tax bills, credit rating agencies often consider a general obligation pledge to have very strong credit quality and frequently assign them investment grade ratings. If local property owners do not pay their property taxes on time in any given year, a government entity is required to increase its property tax rate by as much as is legally allowable in a following year to make up for any delinquencies. In the interim between the taxpayer delinquency and the higher property tax rate in the following year, the general obligation pledge requires the local government to pay debt service coming due with its available resources.

Irish budget, 2013

The 2013 Irish budget was the Irish Government budget for the 2013 fiscal year, presented to Dáil Éireann on 5 December 2012. It was the second budget of the 31st Dáil.The budget saw the introduction of the Local Property Tax at rates of 0.18% per annum and 0.25% per annum.

Child benefit will be cut by €10 a month with €61m cuts in other household benefits. College fees will also rise in the next year by €250 a student while motor tax will also increase.

A packet of 20 cigarettes increases by 10 cent while excise duty on a pint or beer or cider will increase by 10 cent, on a standard measure of spirits by 10 cent, and on a bottle of wine by €1.On 13 December 2012, Labour Party TD Colm Keaveney voted against the government on cuts to the respite care grant leading to his loss of the Parliamentary Labour Party whip.

Land value tax

A land/location value tax (LVT), also called a site valuation tax, split rate tax, or site-value rating, is an ad valorem levy on the unimproved value of land. Unlike property taxes, it disregards the value of buildings, personal property and other improvements to real estate. A land value tax is generally favored by economists as (unlike other taxes) it does not cause economic inefficiency, and it tends to reduce inequality.Land value tax has been referred to as "the perfect tax" and the economic efficiency of a land value tax has been known since the eighteenth century. Many economists since Adam Smith and David Ricardo have advocated this tax, but it is most famously associated with Henry George, who argued that because the supply of land is fixed and its location value is created by communities and public works, the economic rent of land is the most logical source of public revenue.A land value tax is a progressive tax, in that the tax burden falls on titleholders in proportion to the value of locations, the ownership of which is highly correlated with overall wealth and income. Land value taxation is currently implemented throughout Denmark, Estonia, Lithuania, Russia,, Singapore, and Taiwan; it has also been applied to smaller extents in subregions of Australia, Mexico (Mexicali), and the United States (e.g., Pennsylvania).

Land value tax in the United States

Land value taxation (i.e. property tax applied only to the unimproved value of land) has a long history in the United States dating back from Physiocrat influence on Thomas Jefferson and Benjamin Franklin. It is most famously associated with Henry George and his book Progress and Poverty (1879), which argued that because the supply of land is fixed and its location value is created by communities and public works, the economic rent of land is the most logical source of public revenue. and which had considerable impact on turn-of-the-century reform movements in America and elsewhere. Every single state in the United States has some form of property tax on real estate and hence, in part, a tax on land value. However, Pennsylvania in particular has seen local attempts to rely more heavily on the taxation of land value.

Mill (currency)

The mill or (₥) (sometimes mil in the UK, when discussing property taxes in the United States, or previously in Cyprus and Malta) is a now-abstract unit of currency used sometimes in accounting. In the United States, it is a notional unit equivalent to ​1⁄1000 of a United States dollar (a one-hundredth of a dime or a tenth of a cent). In the United Kingdom it was proposed during the decades of discussion on the decimalization of the pound as a ​1⁄1000 division of the pound sterling. Several other currencies used the mill, such as the Maltese lira.

The term comes from the Latin "millesimum", meaning "thousandth part".

Owner-occupancy

Owner-occupancy or home-ownership is a form of housing tenure where a person, called the owner-occupier, owner-occupant, or home owner, owns the home in which he/she lives. This home can be house, apartment, condominium, or a housing cooperative. In addition to providing housing, owner-occupancy also functions as a real estate investment.

PACE financing

PACE financing (property assessed clean energy financing) is a means of financing energy efficiency upgrades, disaster resiliency improvements, water conservation measures, or renewable energy installations of residential, commercial, and industrial property owners. Depending on state legislation, PACE financing can be used to finance building envelope energy efficiency improvements such as insulation and air sealing, cool roofs, water efficiency products, seismic retrofits, and hurricane preparedness measures. In some states, commercial PACE financing can also fund a portion of new construction projects, as long as the building owner agrees to build the new structure to exceed the local energy code.

Examples of energy efficiency and renewable energy upgrades range from adding more attic insulation to installing rooftop solar panels for residential projects and chillers, boilers, LED lighting and roofing for commercial projects. In areas with PACE legislation in place, governments offer a specific bond to investors or in the case of the open-market model, private lenders provide financing to the building owners to put towards an energy retrofit. The loans are repaid over the selected term (over the course of somewhere between 5 and 25 years) via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts, state agencies or finance companies and the proceeds can be used to retrofit both commercial and residential properties. One of the most notable characteristics of PACE programs is that the loan is attached to the property rather than an individual. A PACE loan is therefore said to be nonrecourse to the borrower.PACE can also be used to finance leases and power purchase agreements (PPAs). In this structure, the PACE property tax assessment is used to collect a lease payment of services fee. The primary benefit of this approach is that project costs may be lower due to the provider retaining the tax incentives and passing the benefit on to the property owner as a lower lease or services payment.

PACE programs help home and business owners pay for the upfront costs of green initiatives, such as solar panels, which the property owner then pays back by increasing property taxes by a set rate for an agreed-upon term ranging from 5–25 years. This allows property owners to begin saving on energy costs while they are paying for their solar panels. This usually means that property owners have net gains even with increased property tax.

Property tax in the United States

Most local governments in the United States impose a property tax, also known as a millage rate, as a principal source of revenue. This tax may be imposed on real estate or personal property. The tax is nearly always computed as the fair market value of the property times an assessment ratio times a tax rate, and is generally an obligation of the owner of the property. Values are determined by local officials, and may be disputed by property owners. For the taxing authority, one advantage of the property tax over the sales tax or income tax is that the revenue always equals the tax levy, unlike the other taxes. The property tax typically produces the required revenue for municipalities' tax levies. A disadvantage to the taxpayer is that the tax liability is fixed, while the taxpayer's income is not.

The tax is administered at the local government level. Many states impose limits on how local jurisdictions may tax property. Because many properties are subject to tax by more than one local jurisdiction, some states provide a method by which values are made uniform among such jurisdictions.

Property tax is rarely self-computed by the owner. The tax becomes a legally enforceable obligation attaching to the property at a specific date. Most states impose taxes resembling property tax on vehicles registered in the state, and some states tax some other types of business property.

Proposition 2½

Proposition 2½ (Mass. Gen. L. c. 59, § 21C) is a Massachusetts statute that limits property tax assessments and, secondarily, automobile excise tax levies by Massachusetts municipalities. The name of the initiative refers to the 2.5% ceiling on total property taxes annually as well as the 2.5% limit on property tax increases. It was passed by ballot measure, specifically called an initiative petition within Massachusetts state law for any form of referendum voting, in 1980 and went into effect in 1982. The effort to enact the proposition was led by the anti-tax group Citizens for Limited Taxation. It is similar to other "tax revolt" measures passed around the same time in other parts of the United States. This particular proposition followed the movements of states such as California.

State Board of Equalization (California)

The State Board of Equalization (BOE) is a public agency charged with tax administration and fee collection in the state of California in the United States. The authorities of the Board fall into four broad areas: sales and use taxes, property taxes, special taxes, and acting as an appellate body for franchise and income tax appeals (which are collected by the Franchise Tax Board). The BOE is the only publicly elected tax commission in the United States. The board is made up of four directly elected members, each representing a district for four-year terms, along with the State Controller, who is elected on a statewide basis, serving as the fifth member. In June 2017, Governor Jerry Brown signed legislation stripping the Board of many of its powers, returning the agency to its original core responsibilities (originating in the State Constitution in 1879).

Tax assessment

Tax assessment, or assessment, is the job of determining the value, and sometimes determining the use, of property, usually to calculate a property tax. This is usually done by an office called the assessor or tax assessor.

Taxation in Azerbaijan

The tax legislation of Azerbaijan is comprised by the Constitution of Azerbaijan Republic, the Tax Code and legal standards which are adopted herewith. The taxes levied in Azerbaijan can be generally broken down into 3 main types: state taxes, taxes of autonomy republic and local (municipal) taxes. State taxes include the following: personal income tax, corporate tax, value added tax, excise tax, property tax, land tax, road tax, mineral royalty tax and simplified tax. Taxes of autonomy republic are the same as state taxes but levied in Nakhichevan Autonomous Republic.The Tax Code of Azerbaijan Republic was approved on 11 July 2000 and consists of two parts. The General Part indicates the rights and responsibilities of taxpayers, tax agents and tax authorities, procedures of tax registration, tax control and audit. The second part, also referred to as Special Section, defines specific taxes and their bases, rates, payment schedules and procedures. There exist separate taxation procedures for Production Sharing Agreements (PSAs).From 2010, the government revenues from taxes started to rise. Thus, in 2014, tax revenues as percentage from GDP totaled 14.213%. Highest shares of tax revenues came from value added tax and corporate profit taxes in 2014. In 2015, tax revenues as percentage of GDP were equal to 15.6%.The central executive body which provides the implementation and control of tax policies in the country, collection and transfer of tax payments into the government budget is Ministry of Taxes of Azerbaijan Republic.In Azerbaijan, on January 1, 2001, a new tax code went into effect. Personal income rates remained the same, at rates ranging from 12–35%, as did the corporate tax rate, at 27%. However, as of 2005, the corporate rate was set at 24%. The revised depreciation schedule for corporate assets favors investments in high-tech equipment and oil and gas exploration. Depreciation rates are 10% a year for buildings, 25% a year for equipment and computers, 25% for geological and exploratory costs, and 20% a year for all other assets. However, accelerated depreciation is allowed for capital spending allocated for production purposes at twice the standard rates. Included in this are expenditures on the building of those facilities that are to be used in the actual manufacture of goods. The value-added tax (VAT) was reduced from 20% to 18%, while the property tax was raised from .5% to 1% of assessed value. A .05% Road Fund Tax on turnover was abolished, but there is a highway tax imposed on foreign-registered vehicles collected by customs authorities. There are payroll taxes paid by the employer amounting to 32%, 30% going to the Social Protection Fund, and 2% going to the Employment Fund. There are excise taxes, but excise paid for goods used in production can be off set against excise charged for the finished product. In 2001, total government revenue came to an estimated 21.4% of GDP, while total expenditures, including net lending, amounted to only 20% of GDP, producing a positive fiscal balance equal to 1.4% of GDP.

Taxation in Hong Kong

Under Article 108 of the Basic Law of Hong Kong, the taxation system in Hong Kong is independent of, and different from, the taxation system in mainland China. In addition, under Article 106 of the Hong Kong Basic Law, Hong Kong enjoys independent public finance, and no tax revenue is handed over to the Central Government in China. The taxation system in Hong Kong is generally considered to be simple, transparent and straightforward among jurisdictions in the world. Taxes are collected through the Inland Revenue Department (IRD).

Since the Common Law System is applied in Hong Kong, judgements by the Courts and Boards of Review in tax law cases are resorted to assist the interpretation of taxation rules and concepts. Furthermore, the Inland Revenue Department also issues Departmental Interpretation and Practice Notes (DIPNs) from time to time to clarify and elaborate on the tax rules and to smoothen the tax collection process.Taxes collected in Hong Kong can be generally classified as:

Direct tax – including Salaries Tax, Property Tax and Profits Tax; the guiding statue is Inland Revenue Ordinance (Cap 112);

Indirect tax – including Stamps Duty, Betting Duty, Estate Duty (abolished on 11 February 2006) and others.In the fiscal year 2013/14, Profits tax, an income tax on corporations constituted the largest source of tax collected by the government, followed by Salaries Tax, an income tax on individuals.

Taxation in the Netherlands

Taxation in the Netherlands is defined by the income tax (Wet op de inkomstenbelasting 2001), the wage withholding tax (Wet op de loonbelasting 1964), the value added tax (Wet op de omzetbelasting 1968) and the corporate tax (Wet op de vennootschapsbelasting 1969).

Village Statistics, 1945

Village Statistics, 1945 was a joint survey work prepared by the Government Office of Statistics and the Department of Lands of the British Mandate Government for the Anglo-American Committee of Inquiry on Palestine which acted in early 1946. The data were calculated as of April 1, 1945, and was later published and also served the UNSCOP committee that operated in 1947.

Previous versions of the report had been prepared in 1938 and 1943.The report found the grand total of the population of Palestine was 1,764,520; 1,061,270 Muslims, 553,600 Jews, 135,550 Christians and 14,100 classified as "others" (typically Druze).Regarding the accuracy of its statistics, the report said:

The last population census taken in Palestine was that of 1931. Since that year, the population has grown considerably both as a consequence of Jewish immigration and of the high rate of natural increase among all sections of the population. The rapidity of the change in the size of the population and the length of the period elapsed since the census rendered difficult the task of estimating the population. The population estimates published here are the result of a very detailed work conducted by the Department of Statistics, by using all the statistical material available on the subject. They cannot, however, be considered as other than rough estimates which in some instances may ultimately be found to differ even considerably, from the actual figures. The estimates for the whole of Palestine are to be considered as more reliable than those for sub-districts, while the sub-district estimates can, in turn, be considered as more reliable than those of the individual localities.

Population statistics were prepared in four stages.

The settled population for the whole of Palestine was estimated using the 1931 census data together with natural increase and recorded immigration. Unrecorded immigration of Jews was estimated using data from ships arriving, arrests, and data prepared by the Jewish Agency. Unrecorded immigration or emigration of Arabs could not be estimated "but these movements are not considered to be such as to involve very substantial errors".

An initial population estimate for each sub-district was prepared from the 1931 census and natural increase, plus an allotment from the migratory increase. Then several methods were used to adjust the relative population of different sub-districts using calculations of natality, mortality and fertility in each sub-district.

The settled population for each locality was provisionally estimated using several previous estimates made up to 1944. Then an overall adjustment was made to bring the total for each sub-district up to the sub-district population estimated at the previous step.

The nomadic population estimated at the 1931 census was used since no reliable records for the changes were available.Regarding the figures for land ownership, the report said: "The areas and ownership have been extracted from the Tax Distribution Lists, prepared under the provisions of the Rural Property Tax Ordinance, 1942, the Valuation Lists prepared under the Urban Property Tax Ordinance, 1940, and the Commuted Tithe records for Beersheba Sub-District, in the Gaza District."Israeli geographer Moshe Brawer noted that the report was "an important if not the foremost source of information on population, land possession and land utilization" but questioned its accuracy on several grounds. For example, he wrote that aerial photographs showed the population of some localities to be exaggerated, and that land use classifications may have been biased towards categories that attracted lower taxes.

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