Abstract
In this chapter brief BRICS states profiles are provided (Sect. 3.1) before expanding on the case studies (Sect. 3.2). All integral elements of the property tax designs of the Brazil, India, and China will be reviewed in this chapter, including those relating both to political decisions (tax base, tax assessment, tax rate) and to administrative practices (tax assessment, billing, collection, and enforcement). Furthermore, exogenous factors are essential, such as the role of urbanization and housing markets. Those factors over which the megacities have only limited control will be reviewed and discussed with focus on property taxation. Rounding of, the chapter closes with a comparative view of both the political decisions and administrative practices within all BRICS states (Sect. 3.3) and outlines the future significance of property taxation in urban BRICS states (Sect. 3.4).
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Notes
- 1.
Taxes that are levied on businesses and self-employed individuals for providing services to third parties. They are based on the price of the service rendered. Taxes on services, such as transportation (inter-state and inter-municipal) and communication, are assigned to the states.
- 2.
Dillinger (1991: 3) states in regard to the Octroi that “local indirect taxes are bad local prices (in turn to benefit taxes), the tax falls on business rather on all residents. Local residents could therefore vote themselves a subsidy in the short term, which will result in the long term in cut-back of production, shift of tax to consumers etc., by taxpaying businesses.”
- 3.
Public leasehold is a common land tenure system found in post-communist/transformation states where the state owns a majority of the land. The land is assigned for development and use rights given to private entities through long-term land leasing. Mostly land is not sold at comparative market prices; in Shenzhen for instance around 98% are allocated by negotiation instead of auctions. Furthermore, the property market could be classified as an “emerging market” because the definition and enforcement of property rights are limited, see Anderson (2011: 146).
- 4.
50% of the farmland occupation tax shall be allocated to the local governments to establish an agricultural development fund for reclamation and consolidation of land and improvement of existing arable land.
- 5.
The central government permitted (on January 28, 2011) Shanghai and Chongqing to collect property taxes on new up-market homes. Shanghai started to collect taxes on newly purchased second homes of residents and first homes of non-residents based on transaction value. The city of Chongqing targets existing single-family residences and newly purchased luxury apartments of residents or newly purchased second homes of non-residents.
- 6.
State Administration of Taxation, available at: http://www.chinatax.gov.cn/n6669073/n6669133/6886063.html [Accessed: 4 February 2015].
- 7.
- 8.
- 9.
There are 5570 municipalities as of 2014. The number changes, because there is neither a restriction on the number of municipalities per state nor a restriction on the size (Afonso et al. 2012: 29).
- 10.
The index classifies 102 countries real estate markets into five categories; highly transparent, transparent, semi-transparent, low transparency, and opaque. The first-tier cities of Brazil rank 28th, while South Africa is on rank 20. Both real estate markets are classified “transparent”. The first-tier cities of China, India, and Russia are classified “semi-transparent” ranking 35th, 40th, and 37th. Available at: http://www.jll.com/greti/Pages/Rankings.aspx [Accessed: 4 February 2016].
- 11.
Available at: http://www.observatoriodasmetropoles.ufrj.br/metrodata/ibrm/index.html [Accessed: 5 February 2016].
- 12.
IGBE. 2014. Produto Interno Bruto dos Municípios 2012, Instituto Brasileiro de Geografia e Estatística, 23. Available at: http://servicodados.ibge.gov.br/Download/Download.ashx?u=ftp.ibge.gov.br/Pib_Municipios/2012/pibmunic2012.pdf [Accessed: 4 February 2016].
- 13.
Exceptions are on transportation and communication, which fall within the responsibility of the states (Afonso et al. 2012: 10).
- 14.
Besides the taxes stated, municipalities are allowed to impose fees, such as garbage collection fee (TCL) and a street lighting fee (COSIP), and betterment levies (CM).
- 15.
According to Afonso et al. (2012: 13) the main revenue source for many municipalities constitutes the federal and state governments taxes transferred. Especially for smaller municipalities the Municipal Participation Fund (FPM) is the most important revenue source: “The FPM is a federal redistribution fund that is allocated irrespectively of the municipal ability to generate its own-revenues; the funds are distributed according to the size of the municipal population. Smaller municipalities are expected to have less capacity to collect taxes and thus receive higher transfers from the FPM.”
- 16.
Brazil. 2010. Constitution of the Federative Republic of Brazil, 3rd Edition (Constitutional text of October 5, 1988, with the alterations).
- 17.
São Paulo has an urbanization rate of 96.6%, see: IGBE. 2015. Síntese de Indicadores Sociais—Uma Análise das Condições de Vida da População Brasileira 2015.
- 18.
Available at: http://riotimesonline.com/brazil-news/rio-real-estate/brazil-housing-market-cools-but-not-crashing-yet/ [Accessed: 18 February 2016].
- 19.
Rio de Janeiro. 2013. Plano Estratégico do Prefeitura do Rio de Janeiro 2013–2016, 78.
- 20.
The municipal tax law referred to is Lei 691 De 24 De Dezembro De 1984 in its most current version, see Consolidation of Tax Laws in Force in Rio de Janeiro. Available at: http://www2.rio.rj.gov.br/smf/fcet/legislacao.asp [Accessed: 17 February 2016].
- 21.
See Prefeitura de Rio de Janeiro. 2016. Informativo Valor Venal—IPTU 2016.
- 22.
Ibid.
- 23.
VR and VC according to the street names of Rio de Janeiro. Available at: http://www2.rio.rj.gov.br/smf/siam/logradouro.asp [Accessed: 17 February 2016].
- 24.
The single tax rate for built-up and vacant land jointly is calculated as follows: a = (ap × Ap + at × At)/(Ap + At), where “a” is the tax rate, and “A” the area. The subscribed “p” stands for built-up and “t” for the vacant land (Art. 67).
- 25.
The proper names are Coordenadoria do IPTU (F/CIP), Gerência de Fiscalização e Revisão de Lançamento (F/CIP-1), Gerência de Atendimento e Controle Processual (F/CIP-2), Gerência de Cobrança e Acompanhamento da Arrecadação (F/CIP-3), Gerência de Controle Cadastral e Inclusão Predia (F/CIP-4); Gerência de Recadastramento e Atualização Cadastral (FCIP-5).
- 26.
Due to safety reasons, the assessors have special vests of the City Hall; in addition they send a specific password by email, which needs to be confirmed to the property owner. Available at: http://www.rio.rj.gov.br/web/smf/o-que-e1 [Accessed: 17 February 2016].
- 27.
See Lincoln Institute for Land Policy; they provide comparative results on various cities in Latin America with regard to various aspects of property taxation. Available at: http://www.lincolninst.edu/resources-tools/property-tax-in-latin-america-comparative-analysis/access-to-data [Accessed: 13 February 2016].
- 28.
Ibid.
- 29.
Ibid.
- 30.
The difference between exemption and immunity is that exemption occurs at the time of real estate property transaction, e.g. a rentier buys the property, and it has to be applied for. Immunity occurs immediately, e.g. reciprocal immunity given in the Federal Constitution (Art. 150), whereby the Union, States and Municipalities may not impose property taxes on each other’s properties.
- 31.
All changes on IPTU are published in chronical order on the official homepage of the Prefeitura de São Paulo. Available at: http://www.prefeitura.sp.gov.br/cidade/secretarias/financas/legislacao/index.php?p=3165 [Accessed: 9 February 2016].
- 32.
In the following it is referred to DECRETO Nº 56.235, from 3rd of July, 2015. Available at: http://ww2.prefeitura.sp.gov.br//arquivos/secretarias/financas/legislacao/Decreto-56235-2015-CLT.pdf [Accessed: 9 February 2016].
- 33.
Discounts are granted according to value bands. For residential buildings that are exclusively or predominantly used as a residence with a market value higher than R$ 160,000 and less than or equal to R$ 320,000, a discount on the market value corresponding to the difference between R$ 320,000 and its market value is granted.
- 34.
Law 15,044, 2009, Art. 10: “From the year 2013, the Executive Branch is required to forward by 15 October of the year in respect of first and third year of its mandate, the legislature, the bill with proposed upgrade of unit values of square meter of construction and land contemplated by Law No. 10.235, of December 16, 1986.”
- 35.
Available at: http://www.capital.sp.gov.br/portal/noticia/537 [Accessed: 12 February 2015].
- 36.
Secretaria Municipal de Finanças e Desenvolvimento Econômico.
- 37.
Secretaria Municipal de Finanças e Desenvolvimento Econômico (SF).
- 38.
See Lincoln Institute for Land Policy; they provide comparative results on various cities in Latin America with regard to various aspects of property taxation. Available at: http://www.lincolninst.edu/resources-tools/property-tax-in-latin-america-comparative-analysis/access-to-data[Accessed: 18 February 2016].
- 39.
Ibid.
- 40.
Ibid.
- 41.
Ibid.
- 42.
Ibid.
- 43.
Tax calendar available at: http://www.prefeitura.sp.gov.br/cidade/upload/Edital-do-IPTU-2016_1452003466.pdf [Accessed: 7 February 2016].
- 44.
In order to enforce the tax, São Paulo also makes use of a municipal register of delinquents named Cadastro Informativo Municipal (CADIN) that registers the names of individuals and companies that have disputes with the organs and entities of the Municipal Public Administration. However, the blacklist is mostly focused on commercial properties only, such as a prohibition on signing contracts with the São Paulo municipal government and on receiving tax incentives (Carvalho 2014: 74).
- 45.
See Lincoln Institute for Land Policy, available at: http://www.lincolninst.edu/resources-tools/property-tax-in-latin-america-comparative-analysis [Accessed: 3 February 2016].
- 46.
See Lincoln Institute for Land Policy; they provide comparative results on various cities in Latin America with regard to various aspects of property taxation. Available at: http://www.lincolninst.edu/resources-tools/property-tax-in-latin-america-comparative-analysis/access-to-data [Accessed: 13 February 2016].
- 47.
Ben Travener. 2013. Wages Outpaced by Property Prices in Rio. The Rio Times. Available at: http://riotimesonline.com/brazil-news/rio-business/wages-outpaced-by-property-prices-in-rio/ [Accessed: 24 February 2016].
- 48.
Alexander Wasastjerna. 2014. Property prices in Brazil: Statistics about average Brazilian house prices per m2. Available at: http://www.propertybrazil.com/articles/property-prices-in-brazil-statistics-about-average-brazilian-house-prices-per-m2 [Accessed: 24 February 2016].
- 49.
Carvalho (2013: 169).
- 50.
Maria Luisa Barros, tributario, 14/08/2015. Available at: http://tributario.com.br/a/cidade-do-rio-de-janeiro-prefeitura-renegocia-dividas-de-iptu-e-iss/ [Accessed: 4 March 2014].
- 51.
Gisele Brito and Diego Sartorato, 10/24/2014. Available at: http://outraspalavras.net/outrasmidias/destaque-outras-midias/sao-paulo-comeca-a-aplicar-iptu-anti-especulacao-imobiliaria/ [Accessed: 4 March 2014].
- 52.
For this see Riël Franzsen’s lecture on the topic “Tax Relief” in the context of the online-course “Designing and Implementing Property Tax System in Africa” at the Lincoln Institute for Land Policy.
- 53.
For this see Dian Johnstone’s lecture on the topic “Tax Administration” in the context of the online-course “Designing and Implementing Property Tax System in Africa” at the Lincoln Institute for Land Policy.
- 54.
See William McCluskey’s lecture on the topic “Automated Valuation” in the context of the online-course “Designing and Implementing Property Tax System in Africa” at the Lincoln Institute for Land Policy.
- 55.
Of course, this carries the risk that urbanization into the metropolitan areas is further accelerated, which leads to further investment needs, etc.
- 56.
Cited by De Cesare and Smolka (2010: 13).
- 57.
Urban local bodies are split into municipal corporations, municipalities (second-tier urban local bodies) and the nagar panchayats (third-tier local bodies) (Fourteenth Finance Commission, 2014: 113).
- 58.
Municipalities with more than 300,000 residents are classified as municipal corporations.
- 59.
Urban Local Bodies (ULBs) are subdivided along the demarcation line of 300,000 inhabitants with those towns/cities having less being called municipalities and those surpassing the 300,000 being called municipal corporations. In this chapter, municipalities and ULBs are used synonymously.
- 60.
Functions that have to be accomplished by ULBs: (1) urban planning including town planning; (2) regulation of land-use and construction of buildings; (3) planning for economic and social development; (4) roads and bridges; (5) water supply for domestic, industrial and commercial purposes; (6) public health, sanitation conservancy and solid waste management; (7) fire services; (8) urban forestry, protection of the environment and promotion of ecological aspects; (9) safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded; (10) slum improvement and upgradation; (11) urban poverty alleviation; (12) provision of urban amenities and facilities such as parks, gardens, playgrounds; (13) promotion of cultural, educational and aesthetic aspects; (14) burials and burial grounds; cremations, cremation grounds and electric crematoriums; (15) cattle pounds; prevention of cruelty to animals; (16) vital statistics including registration of births and deaths; (17) public amenities including street lighting, parking lots, bus stops and public conveniences; (18) regulation of slaughter houses and tanneries.
- 61.
Octroi is an import tax of goods into urban area for consumption, use or sale.
- 62.
To coordinate the vertical and horizontal fiscal balance between the three tiers of government there are constitutional Bodies, the Central Finance Commission (FC) and the State Finance Commissions (SFC), that have to confer every five years to review the finances and to provide suggestions to improve further the fiscal environment among the respective levels of government. The SFC makes recommendations on (i) taxes, levies, and duties that are assigned to municipalities, (ii) taxes, duties, and levies shared between the states and municipalities, (iii) grants-in-aid, and (iv) further measures that augment the municipal finances (Mathur et al. 2011: 27). Thereafter, the Central Finance Commission is expected to assign supplement resources to the States based on the State Finance Commission’s recommendations in order to augment the Consolidated Fund of the States, which is further passed to the respective municipalities (and panchayats) via a distribution formula. Beyond that, the FC consolidates recommendations of the SFC and sponsors various studies on Union, State and municipal finances in order to retain reliable data on the finances and to enable the FC to make informed decisions.
- 63.
Some state revenues from Table 1.1 are shared with the respective municipalities. Revenue shares are often assigned to the ULBs with regard to Entertainment Tax, Profession Tax, and Surcharge on Stamp Duty.
- 64.
According to Pethe (2013: 246), the per capita income of Mumbai metropolitan region is double the average of the respective State Maharashtra and about three times the national average.
- 65.
Greater Mumbai is the capital city of Maharashtra, one of the only States where Octroi is still levied. However, only municipal corporations are allowed to levy Octroi within the State.
- 66.
More details on property related taxes that are subject to income tax see Annex A.3.
- 67.
Palash Gosh. 2013. How many People in India Pay Income Tax? International Business Times. Available at: http://www.ibtimes.com/how-many-people-india-pay-income-tax-hardly-anyone-1294887 [Accessed: 10 December 2015].
- 68.
Available at: http://www.charteredclub.com/tds-on-property/ [Accessed: 10 December 2015].
- 69.
Available at: http://www.incometaxindia.gov.in/tutorials/house-property.pdf [Accessed: 10 December 2015].
- 70.
Instead, there might be a surcharge on taxable high income (Arun Jaitley. 2015. 2015–2016 budget speech, 28 February 2015).
- 71.
Bangalore is the capital of the State of Karnataka.
- 72.
The BBMP was formed out of seven City Municipal Councils, one Town Municipal Council, and one hundred and eleven villages in the Bruhat Bangalore Mahanagara Palike. While the urban area tripled by the amalgamation (from 226 to 756 sq. km) the population increased from 4.5 to 5.6 million (TSFC Karnataka 2008: 166).
- 73.
An Expert Committee consisting of 1000 stakeholders worked out a holistic approach for restructuring BBMP. The Committee reviewed best practices, heard citizen suggestions, etc., and set up recommendations for spatial planning, public finance, HR, governance and administration, etc., see BBMP (2015).
- 74.
“Built-up area” means total area covered by building or high-rise buildings above the plinth level, and including all covered area like basement, mezzanine flooring, balcony whether covered or not; garage area, constructed boundary of swimming pool, fuel storage tanks constructed underground or above the ground, storage of merchandise in open space like timber, granite, bricks etc., stilts meant for parking and telecommunication and other towers and hoardings erected on the surface or top or any other open space of land or building but does not include—(a) court yard at the ground level, garden, rocky area, well and well structures, plant, nursery platform around a tree, overhead water tank, fountain, bench with open top and the like; (b) drainage, culvert, conduit, catch-pit, gully pit, chamber gutter and the like; (c) compound or boundary wall, chejja, uncovered staircase, watchman booth/pump house not exceeding 3 sq. m and sump tank.
- 75.
Available at: http://bbmp.gov.in/documents/10180/532690/Duties+and+Responsibality+Eng.pdf/ab61aca3-ce7b-417f-b5b5-70c4714aff2f [Accessed: 15 December 2015].
- 76.
Katha registration of a property applies to the recording of property in the property register, which is maintained by a Municipality or Corporation. When a property is registered with the Municipality or Corporation, it is assessed to tax, assigned a municipal number. The person primarily responsible for paying the property tax is also recorded.
- 77.
There are several Return forms applied: Formula I is for properties already having a PID number (mostly in erstwhile BMP area), Form II is for all properties still having Katha Number (properties in CMC, TMC and the 110 villages that have been added to BBM), and Form III is for the properties that have neither PID nor Katha number (unlawful/unauthorised properties). Beyond that, there is Form VI for properties that are exempt; however, they have to give all property tax details in order to calculate the service charge.
- 78.
BBMP Budget Speech, 2014–2015: 35.
- 79.
The 13th Finance Commission of India recommended the establishment of Property Tax Boards on State level. They assist urban local bodies in determining and collection of property tax.
- 80.
In order to do so, the Commissioner or any officer charged with the execution might even “break upon any outer or inner door or window of a building in order to make the distress, if he has reasonable ground for believing that such building contains property which is liable to seizure” (28 KMC Act).
- 81.
Mumbai is the capital of the State of Maharashtra.
- 82.
ARV generally lacks transparency with regard to residential letting rates that were not published and the difficulties to calculate and assess the tax liabilities. In contrast, CV is based on a formula; therefore, self-assessment is more transparent. The ARV system for residential properties in Mumbai was based on 187.5% or 83.5% of ARV depending on the existence, respectively, non-existence of water meters within each household. The ARV system depended on the gross annual rent that the property might bring minus an allowance of 10% for maintenance. Data on the number of properties, their classification (commercial, residential, etc.) were not available at that time.
- 83.
IPTI President’s Message—February 2016.
- 84.
Ibid.
- 85.
All municipal laws provide the timeframe for re-assessment, which is de jure between four and five years. De facto, however, the period between re-assessment is about 20–30 years (Gosh and Kundu 2011: 98).
- 86.
There is no continuance with regard to the weightage factors since the introduction in 2010; e.g. older buildings are more privileged from 2015 onwards as the weighting factor for buildings older than 50 years shifted from 0.7 to 0.5.
- 87.
- 88.
The number of properties has increased from a total number of 1,300,000–1,512,850 in the period 2007–2008 to 2011–2012; see Budget Presentation of Bruhat Bengaluru Mahanagara Palike for the year 2011–2012 by Sri. Manjunatha Raju. Available at: http://218.248.45.169/download/budget/Budget%20Speech.pdf [Accessed: 26 November 2015].
- 89.
According to Table 3.4, about 0.4% of total slum properties pay property tax in Bangalore. Mumbai is about to tax slum properties, which make up more than 50% of total properties.
- 90.
Excluded are all residential properties with standard rent being less than Rs. 3500 per month in the areas of Karnataka Municipal Corporation Act of 1975 and Rs. 2000 per month elsewhere. Beyond that, commercial buildings having a plinth area of less than 14 sq. m are exempt in the state of Karnataka.
- 91.
The house price affordability is measured in terms of median house price to yearly income. It indicates the average number of yearly incomes required to own a house.
- 92.
This argumentation refers to people living in urban areas with adequate public service provision, which might include parts of slum areas where public services are rendered (water and wastewater supply, waste collection, healthcare, street lighting, etc.). Overall, with regard to migration the rule of Glaeser (2011, 70) applies, “the presence of poverty in cities […] reflects urban strength, not weakness. Megacities are not too big. Limiting their growth would cause significantly more hardship than gain, and urban growth is a great way to reduce rural poverty”.
- 93.
The FSI in Central Business Districts varies substantially among the megacities worldwide. According to the Wold Bank, Shanghai (China) applies a FSI of 1:8, Honk Kong (China) 1:12, Singapore 1:12–1:25; see World Bank (2013). Urbanization beyond Municipal Boundaries—Nurturing Metropolitan Economies and Connecting Peri-Urban Areas in India. The World Bank, Washington DC, 53ff.
- 94.
With an increase of floor space there is higher demand on open space surrounding the building, on public services, and on infrastructure, such as broader roads the higher the building is, higher water pressure, better waste disposal, etc. (Bertaud and Brueckner 2003). In order to achieve an increase on FSI/FAR, an overall urban planning strategy is necessary, which takes populations’ prospects, employment growth, infrastructure need and investments, and urban spatial planning and zoning, into account.
- 95.
Bangalore Development Authority. 2015. Revised Master Plan 2015, Zoning of Landuse and Regulations.
- 96.
Bertraud, Alain. 2011. Mumbai FAR/FSI conundrum. Available at: http://alainbertaud.com/wp-content/uploads/2013/06/AB-Mumbai-FSI-Conundrun-Revised_June-2013_kk-ab1.pdf [Accessed: 13 December 2015].
- 97.
Nair, Shalin. 2015. Mumbai Floor Space Index: Moving up leaves problems aground. The Indian Express. Available at: http://indianexpress.com/article/india/india-others/mumbai-floor-space-index-moving-up-leaves-problems-aground/ [Accessed: 13 December 2015].
- 98.
The following remarks are mainly based on current Budget Speeches held by Sitaram Kunte (Mumbai Budget Speech 2015–2016, 17-2-2014) and BBMP (2015) report.
- 99.
Dr. M. S. Shivaprasad, Bangalore Budget Speech 2014–2015, 4-2-2015.
- 100.
Taxing slums is not an easy measure, because a legal property tax is put on (typically) illegal property. Consequently, levying the tax would result in de facto legalizing slums. The slum dwellers will have to be issued property registration certificates in order to make them pay the tax. The main question in this regard is, however, if public services are rendered anyway, because if this is not the case, the benefit principle would be ignored.
- 101.
De facto, there are five levels of local government with prefectures under provinces and townships under counties (Wang and Herd 2013: 5).
- 102.
Ownership of state-owned land is limited to a certain term of years, depending on the purpose of use. Urban land, for example, is leased for different terms: 70 years for residential, 50 years for industrial, and 40 years for commercial use. The government provides the land via tender, negotiation or auction. After the land-use right expires and in absence of renewal, the land itself and all adjunct improvements officially fall back to the state government. So far, it has not happened and a detailed procedure is not specified by law. With homeownership rates of more than 80% of the formal urban housing stock (Youngman 2012: 16), homeowners live under a ‘veil of uncertainty’.
- 103.
Yangpeng, Zheng (2015): Payouts eat into land sale revenue for 2015. China Daily, latest update 2016-04-06.
- 104.
A privately owned property in an urban area, such as an apartment, always goes along with co-ownership of a land use right and the right to profit from the use of the state-owned land. Hence, everyone who possesses a piece of urban real estate in China is by legal definition the owner of the house (or apartment) but only the user of the state-owned land.
- 105.
The calculation is as follows: Per capita floor space of residential buildings in urban areas, sq. m, multiplied average selling price of commercialized residential buildings, yuan per sq. m, in relation to per capita disposable income of urban households, yuan.
- 106.
The revenue elasticity is an empirical measure between the relative change in the individual tax (dT/T ) amounts and the relative change of the social product (dY/Y ).
- 107.
Migrants might pay for local services through their rents. However, they mostly live in the outskirts of the cities in the informal sector rental market. From a public finance perspective, they make use of public infrastructure not (tax) paying for it accordingly.
- 108.
Federal Tax Service of Russia (https://www.nalog.ru/eng/individuals/nalog/), Tax Code of the Russian Federation Part II, Unofficially Translated by Ernst and Young; City of Johannesburg, Property Rates Policy 2015/2016. (http://www.joburg.org.za/images/stories/2015/Sept/Rates%20Policy%202015-16.pdf)
- 109.
Brazil divides the property tax into an urban Imposto sobre a Propriedade Predial e Territorial Urbana (IPTU) and a rural Imposto sobre a Propriedade Territorial Rural (ITR) property tax.
- 110.
The Tax Code of the Russian Federation was extended by Chapter 32, which is not included in the Tax Code of the Russian Federation Part II, Unofficially Translated by Ernst and Young.
- 111.
In this case, the House Property Tax and the Urban and Township Land Use Tax are reviewed as urban property taxes.
- 112.
However, there might be other factors explaining the expanding role of government, such as an increased feasibility to levy taxes and along with that an increasing ability to finance public expenditures (Lamartina and Zaghini 2010: 162).
- 113.
Marshall, Alfred (1920). Principles of Economics.
- 114.
The calculation of ‘tipping points’ (the point when the urban population outweighs the rural population) is merely a mathematical one based on statistics of the United Nations, Department of Economic and Social Affairs, Population Division: World Urbanization Prospects: The 2014 Revision.
- 115.
Urbanization can be traced back to different explanatory variables, such as (i) natural population increase with a declining infant mortality and an increasing life expectancy outweighing the gradual reduction in fertility, (ii) rural-urban migration and (iii) reclassification of rural areas as urban areas (UN-HABITAT 2010: 22).
- 116.
National Housing Bank of India. 2015. Social and Environmental Assessment for the Low Income Housing Finance Project—Revised 19 June 2015. Available at: http://www.nhb.org.in/Publications/Social-and-Environment-Assesment-for-the-Low-Income-Housing-Finance-Proj.pdf [Accessed: 1 April 2016].
- 117.
Needs estimates in Brazil take into account: Excessive spending on rent (more than 30% of household income); Involuntary cohabitation (when more than one household lives in the same unit); Substandard physical quality of buildings and access to infrastructure; Overcrowding (although this does not fully allow for overcrowding of children), see RICS (2014b: 27).
- 118.
Government of India Ministry of Statistics & Programme Implementation New Delhi, 20th Conference Of Central and State Statistical Organisations (COCSSO) Gangtok, Sikkim 10–11 January, 2013 Urban Statistics.
- 119.
Ibid.
- 120.
Ibid.
- 121.
Ibid.
- 122.
Latest Chinese State Council policy interventions are:
2003; the real estate market became a major pillar of economic development following the “Announcement of State Council on Promoting the Continuous and Healthy Development of the Real Estate Market”.
2010; the “Notice on Firmly Suppressing the Rapid Increase of Housing Price in Some Cities” introduced first purchase controls (mortgages were limited to two houses).
2011; according to the “Further Improvements Real Estate Market Regulation” the mortgage and purchase control policies were reinforced (minimum payment of 60% directly and mortgage interest rate for second homes increased to 1.1 times the base rate).
2013; the “Notice on Continually Improving Real Estate Market Regulation” resulted in a further strengthening of controls.
- 123.
The points are retrieved from the RICS report (2014a, b) on “Global Affordable Housing: BRICS Plus Mortar”. The report reviews the housing needs and supply in Brazil (pp. 19–34), China (35–55) and India (56–70). Further, they discuss the effects on economic growth and compare the government housing policies.
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Salm, M. (2017). Property Taxes Within the BRICS States. In: Property Tax in BRICS Megacities. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-62671-0_3
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