Paul Sanderson - Optimal Property Taxation and the Land Value Tax

Introduction to Assessment Matters podcast 00:00Paul’s bio and big ideas 00:35Paul’s background in assessment and valuationWhat is IPTI? 2:05Not-for-profit organization providing of advice, guidance, and training for everything property taxCompletely and strictly impartialMeeting the education and advisory needs of a wide variety of stakeholdersFundamental characteristics of a good property tax system 4:12Key principles: Simplicity, Fairness, Consistency, TransparencyMost property tax systems are unnecessarily complicatedSecond-order effects on compliance, media coverage, etc.Ideal systems vs real-world challenges 10:45Ideal world: getting rid of exemptions, abatements, appealsReality: various constituencies and special interests with exemptions and other favored tax treatments opposing ending said subsidiesSystems become more complex, opaque, and unfairMore on optimal property taxation: the Land Value Tax 16:53Relevant literature: “Progress & Poverty” by Henry GeorgeEconomic case: minimizes distortions and development biasesPrinciple case: the value is generated not by the landowner but rather by society“(Straightforward) land value tax” versus “land value capture”Practical issues of valuation and assessment — determining “unimproved” land value in already highly improved/developed areasExample: the strengths and limits of Australia’s state land taxProperty tax systems around the world 25:58IPTI-COST ScorecardMany different relevant metrics for comparison, based on key principleshttps://www.ipti.org/press-release-ipti-cost-scorecardFinding more about IPTI 28:51https://www.ipti.org