Taxation policy and housing
Abstract
The taxation of housing is complex because housing may be included in a number of different tax bases. Housing is also a complex good accessed by individuals in differing capacities: as homeowners, landlords, and tenants. Taxes that impact on housing include income tax, consumption taxes such as value added tax, wealth and inheritance taxes, land tax, rates or property tax, conveyance duties, and developer levies. Important factors determining the impact of these taxes include the definition of the tax base, the tax rate or schedule, and the valuation method used. There are a variety of tax expenditures (exemptions or concessions) for some housing tenures in most jurisdictions. The mix of taxes and tax expenditures can affect the housing tenure choices of households and the availability, affordability, and environmental sustainability of housing. The key tax policy criteria for assessing tax laws in the area of housing are equity, efficiency, simplicity, and sustainability. © 2012
Description
Keywords
Betterment tax, Consumption tax, Conveyance duty, Developer levies, Housing affordability, Housing sustainability, Housing tenure, Impact fees, Income tax, Inheritance tax, Land tax, Mortgage interest, Property tax, Rates, Tax deduction, Tax exemption, Tax expenditure, Valuation methods, Value added tax, Wealth tax