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Tax interventions in the housing market
Bób, Juraj ; Nič, Milan
This article surveys possibilities of determining the value of building land as base for property taxes, done by municipalities. It is shown that reform is needed. Application of ad valorem taxation could be fairer. In such taxation owners of more valuable building land should pay proportionally larger taxes. Ad valorem taxation will offer a stable source of revenue with a potentially broad and expanding tax base for governments. It will provide the benefit of a more equitable distribution on taxes, as well as greater fiscal transparency and accountability. Administratively easy determination of real estate value is essential. Price maps of building land, administrated by municipalities, could be a solution.

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