A Comparison of Effective Property Tax Rates and Their Implications for Fiscal Effort in the Cities of Taipei and Kaohsiung
Author: Hong-wung Wan, Yan-min Zeng
Abstract / Chinese PDF Download
This study compares effective property tax rates in the cities of Taipei and Kaohsiung. The results show that the mean of the effective property tax rates was 0.066% in Taipei and 0.131% in Kaohsiung in 2007. Horizontal equity is not achieved in either Taipei or Kaohsiung as the property tax is regressive in both cities. Although effective property tax rates are lower in Taipei, its property tax revenue is much higher than Kaohsiung. This is because Taipei City has a higher fiscal capacity due to its higher real estate values. As a result, tax revenue collected by local governments is not a good indicator of fiscal effort because it mixes up fiscal capacity and fiscal effort.
Keywords：Fiscal Capacity、Fiscal Effort、House Tax、Land Value Tax、Property Tax、Regressive