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Property Tax Reforms in India: A Comparison of Delhi and Bangalore

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  • Simanti Bandyopadhyay

    (National Institute of Public Finance and Policy New Delhi)

Abstract

The present paper attempts at a comparative evaluation of two Indian cities, Delhi and Bangalore, in the performance of implementing property tax reforms through unit area method of valuation and self-assessment schemes. Delhi is a city where the results of implementation of these reforms were not up to the mark whereas Bangalore could achieve considerable success. The main objective of the paper is to explain the differences in the extent of the success in achieving the desired outcomes in the two cities. There has been a decrease in number of assessed properties in Delhi and an increase in number of assessed properties in Bangalore. The property tax to GSDP ratio declined in case of Delhi and increased in case of Bangalore. The main findings suggest that it is a combination of policy and administrative factors which are responsible to create differences in performances of the two cities. Optimal progressivity in tax rates, better coverage and collection ratios, better service delivery, better living conditions and a more stable property market are the major factors contributing to a better performance in property tax collection in Bangalore.

Suggested Citation

  • Simanti Bandyopadhyay, 2013. "Property Tax Reforms in India: A Comparison of Delhi and Bangalore," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1321, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper1321
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp1321.pdf
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    References listed on IDEAS

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    1. Simanti Bandyopadhyay & M. Govinda Rao, 2009. "Fiscal Health of Selected Indian Cities," Development Economics Working Papers 22970, East Asian Bureau of Economic Research.
    2. Mr. John Norregaard, 2013. "Taxing Immovable Property Revenue Potential and Implementation Challenges," IMF Working Papers 2013/129, International Monetary Fund.
    3. George R. Zodrow, 2019. "The Property Tax as a Capital Tax: A Room with Three Views," World Scientific Book Chapters, in: George R Zodrow (ed.), TAXATION IN THEORY AND PRACTICE Selected Essays of George R. Zodrow, chapter 15, pages 461-487, World Scientific Publishing Co. Pte. Ltd..
    4. Lall, Somik V. & Deichmann, Uwe, 2006. "Fiscal and distributional implications of property tax reforms in Indian cities," Working Papers 06/39, National Institute of Public Finance and Policy.
    5. Zodrow, George R., 2001. "The Property Tax as a Capital Tax: A Room with Three Views," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 139-56, March.
    6. M. Govinda Rao & Bird, Richard M., 2010. "Urban governance and finance in India," Working Papers 10/68, National Institute of Public Finance and Policy.
    7. Fischel, William A., 2001. "Homevoters, Municipal Corporate Governance, and the Benefit View of the Property Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(1), pages 157-174, March.
    8. Richard M. Bird & Enid Slack (ed.), 2004. "International Handbook of Land and Property Taxation," Books, Edward Elgar Publishing, number 3304.
    9. Fischel, William A., 2001. "Homevoters, Municipal Corporate Governance, and the Benefit View of the Property Tax," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 157-74, March.
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    Cited by:

    1. Preethi Keekan & U Arabi, 2021. "Progressivity Trends in Municipal Property Taxes in Indian Cities: Major Impediments," Shanlax International Journal of Economics, Shanlax Journals, vol. 9(3), pages 45-48, June.

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