Determinants of Property Tax Revenue: Lessons from Empirical Analysis
A cross-country analysis of property-tax revenue performance across 128 countries, identifying what drives successful property and land taxation.
Summary
This 2020 World Bank policy research working paper (PRW 9399) analyses property-tax revenue across 128 countries, asking why some collect far more than others from a tax economists widely favour.
Key Findings
Property-tax revenue depends heavily on administrative capacity — quality of valuation/cadastre, collection systems, and enforcement — far more than on statutory rates. Richer countries with better cadastral infrastructure raise much more; many developing countries leave large potential uncollected. This complements the IMF's assessment: land and property taxes are efficient and under-used, and the binding constraint is administration, especially assessment, not the economics.
Bears On
- Objection: Land value can't be assessed accurately
- Outcome: Property taxes raise welfare in developing countries
Sources
- World Bank (2020), "Determinants of Property Tax Revenue: Lessons from Empirical Analysis," Policy Research Working Paper 9399 — used for the cross-country evidence on what drives property-tax revenue (administration, valuation coverage, and institutional capacity, more than statutory rates). PDF · 📄 Local copy