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Tenure-neutral and Equitable Housing Taxation

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  • Philippe Thalmann

    (EPFL ENAC INTER REME, Ecole Polytechnique fédérale de Lausanne, BAT BP, Station 16, Lausanne, CH-1015, Switzerland, philippe.thalmann@epfl.ch)

Abstract

Equity and neutrality are distinct concepts in housing taxation and weak and strong tenure neutrality should be distinguished. When a tax system is tested for those criteria, the taxes paid by landlords must be included, as they affect the rents renters pay. This paper defines appropriate tests, applies them to a stylised tax system and proposes tax changes designed to restore tenure equity and/or neutrality. It shows how the homeowner's implicit income should be computed for taxes to be fundamentally tenure-neutral or equitable or both. It also shows the key role played by the cost differential in producing housing services under owner-occupation and renting.

Suggested Citation

  • Philippe Thalmann, 2007. "Tenure-neutral and Equitable Housing Taxation," Urban Studies, Urban Studies Journal Limited, vol. 44(2), pages 275-296, February.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:2:p:275-296
    DOI: 10.1080/00420980601074979
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    References listed on IDEAS

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    2. Erling Røed Larsen, 2009. "From data to levy design. The five stages of implementing housing taxes," Discussion Papers 596, Statistics Norway, Research Department.

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