Property taxation and mass appraisal valuations in Australia – adapting to a new environment

Abstract

Purpose -This paper's aim is to examine how long established ad valorem taxation systems can be adapted so they remain relevant and equitable in the more complex contemporary property environment. Design/methodology/ approach -The research methodology involves a review of national and international literature and structured interviews with key informants from the public and private sectors, particularly Queensland, Australia, but also with the Valuer Generals and others of all mainland states and New Zealand. Findings -Ad valorem taxation systems continue to provide an important and sound base for the raising of government revenue. While it is essential that the long-standing fundamental techniques of mass appraisal be protected, a number of relatively simple modifications in policy and operational areas can enhance the effectiveness and robustness of the valuation systems.Research limitations/implications -Despite its importance in the form of taxation in practically all countries, existing research is quite limited and largely descriptive rather than analytical. Limitations also exist because of the very significant variations in law across jurisdictions in Australia and internationally. Practical implications -The findings can be readily applied in valuation systems particularly as regards the consideration of national markets for certain complex properties, proposals for the better sharing of information and the introduction of improved mediation processes in the case of objections. All of these can lead to more efficient and effective application. Originality/value -Difficulties have been experienced in a number of jurisdictions where relatively simple valuation provisions are applied to highly complex property types. This paper provides some innovative ideas as to how, even within existing legislation, these problems can be addressed while protecting the well-established, mass appraisal practices.

An Analysis of the Influence of Property Tax on Housing Prices in the Apulia Region (Italy)

“…Bartik [40] and Schmenner [41] have studied the influence of state taxes on the business location of a new manufacturing plant in the US. Hefferan and Boyd [42] have highlighted the need to take into account property taxation in the definition of appropriate valuation models of mass appraisal that may reflect the evolution of the economic system and meet contemporary changes.…”

Challenges to Property Rate Administration in the Offinso South Municipality, Ghana

“…Property tax is seen as having these qualities in general. It is reliable, broad based and equitable (Hefferan & Boyd, 2010). It enhances autonomy, increases accountability and transparency, highly visible, and localized and Monkam, 2011).…”

“…For instance, the tax on average is more than 2% of Gross Domestic Product (GDP) in industrialized countries (Bahl, 2009). Property taxation is critically important across most Organisation for Economic Cooperation and Development (OECD) countries and constitutes a key source of revenue for state governments in Australia (Hefferan & Boyd, 2010). The tax however, is less utilized in most developing nations notwithstanding its huge potential for local authority revenue mobilization.…”

Mass Appraisal Models of Real Estate in the 21st Century: A Systematic Literature Review

“…Generally, researchers apply the ideas, models and methods of other fields, such as statistics, computer science or geographic science, to the field of real estate mass appraisal. Some scholars have made beneficial attempts to summarize the models from different perspectives, such as academic discipline [7], prediction accuracy [8], computational intelligence [9][10][11], taxation purpose [12][13][14], mortgage purpose [15] and automated valuation application in relevant countries and regions [6,[16][17][18][19][20]. Through the classification of various models, a 3I-trend is summarized, namely AI-Based Model, GIS-Based model and MIX-Based Model.…”