Essay on The Cost Of Property Tax
Revenue Potential and Stability
The potential of property tax as a significant revenue producer for local governments is huge , this is because the value of land and improvements on the land can be measured. Land and improvements on land is growing and will become if not already a broad base in almost all countries. Therefore by applying legislative tax rate can amass large amounts of revenues for local authorities; the application of a tax rate in addition to a good valuation system and a high rate of compliance can make a stable property tax system.
Fairness and Equity
The property tax is a charge for benefit that are received, thus it can be regarded as efficient and fair. The higher the property values the more benefits are received by the taxpayer in that area this may be businesses or residential properties, thus the benefit is proportion to value .In developing countries, there is a large disparity between the rich and the…