Practical guidance for implementing the property tax

Author/Editor(s): Bahl, Roy

Summary:  This study, part of the Fiscal Reform and Economic Governance project's "Best Practices" series, reviews the practice of property taxation in developing and transition countries, and uses this history to suggest a roadmap for reform. The study begins with a discussion of the conventional wisdom about the advantages of using the property tax, and of the reasons why this conventional wisdom does not necessarily travel well to the developing country setting. It then explores the variation in revenue performance between richer and lower income countries and looks for patterns that might explain why some countries do better than others. It then turns to the practice: the rate and base structures, and the administrative requirements and practice. The study concludes with a discussion of “best practices” and how these might move the property tax closer to realizing its revenue potential.

The full study, and a brief note based on the study, can be downloaded via the links below.

Download:  Full Study (PDF)

                   Best Practice Note (PDF)