Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities

Analysis of the current property tax structure, which is calculated in proportion to the area of land and buildings, leaves no doubt that this is not an appropriate solution in terms of tax efficiency and equity. Property tax reform is necessary; however, the concept of ad valorem tax is challenging...

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Main Authors: Felis Paweł, Bernardelli Michał, Malinowska-Misiąg Elżbieta, Makowska Anita, Olejniczak Jarosław
Format: Article
Language:English
Published: Sciendo 2025-06-01
Series:Real Estate Management and Valuation
Subjects:
Online Access:https://doi.org/10.2478/remav-2025-0014
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author Felis Paweł
Bernardelli Michał
Malinowska-Misiąg Elżbieta
Makowska Anita
Olejniczak Jarosław
author_facet Felis Paweł
Bernardelli Michał
Malinowska-Misiąg Elżbieta
Makowska Anita
Olejniczak Jarosław
author_sort Felis Paweł
collection DOAJ
description Analysis of the current property tax structure, which is calculated in proportion to the area of land and buildings, leaves no doubt that this is not an appropriate solution in terms of tax efficiency and equity. Property tax reform is necessary; however, the concept of ad valorem tax is challenging to introduce and implement. An alternative to value-based property tax could be the concept of tax zoning, particularly in heterogeneous urban areas. This would partially expand existing legal regulations, which allow for differentiating tax rates for different types of taxable items, particularly considering their location. The article presents this concept as one that could effectively replace the existing residential property taxation system in a short time. Due to the significant socio-economic diversity of urban units, it is necessary to identify factors reflecting their specificity. The article attempts to quantify the criteria considered significant for residents of Polish cities. A combination of various measures allowed for the indication of the potential effects, both fiscal and non-fiscal. The proposed concepts were validated through empirical analysis based on data from publicly accessible databases. The research results emphasize the importance of the precise design of the property tax system, which can have significant consequences for the dynamics of the real estate market.
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series Real Estate Management and Valuation
spelling doaj-art-285c36db2ec643e2b20db205ea5338102025-08-20T03:22:33ZengSciendoReal Estate Management and Valuation2300-52892025-06-01332395410.2478/remav-2025-0014Land and Residential Property Taxation Model. Concept of Tax Zoning in MunicipalitiesFelis Paweł0Bernardelli Michał1Malinowska-Misiąg Elżbieta2Makowska Anita3Olejniczak Jarosław4SGH Warsaw School of Economics, 142 Niepodległości Avenue, 02-554 Warsaw, PolandSGH Warsaw School of Economics, 142 Niepodległości Avenue, 02-554 Warsaw, PolandSGH Warsaw School of Economics, 142 Niepodległości Avenue, 02-554 Warsaw, PolandWrocław University of Economics and Business, Komandorska 118/120 Street, 53-345 Wrocław, PolandWrocław University of Economics and Business, Komandorska 118/120 Street, 53-345 Wrocław, PolandAnalysis of the current property tax structure, which is calculated in proportion to the area of land and buildings, leaves no doubt that this is not an appropriate solution in terms of tax efficiency and equity. Property tax reform is necessary; however, the concept of ad valorem tax is challenging to introduce and implement. An alternative to value-based property tax could be the concept of tax zoning, particularly in heterogeneous urban areas. This would partially expand existing legal regulations, which allow for differentiating tax rates for different types of taxable items, particularly considering their location. The article presents this concept as one that could effectively replace the existing residential property taxation system in a short time. Due to the significant socio-economic diversity of urban units, it is necessary to identify factors reflecting their specificity. The article attempts to quantify the criteria considered significant for residents of Polish cities. A combination of various measures allowed for the indication of the potential effects, both fiscal and non-fiscal. The proposed concepts were validated through empirical analysis based on data from publicly accessible databases. The research results emphasize the importance of the precise design of the property tax system, which can have significant consequences for the dynamics of the real estate market.https://doi.org/10.2478/remav-2025-0014property tax reformtax zoningreal estate market dynamicse62
spellingShingle Felis Paweł
Bernardelli Michał
Malinowska-Misiąg Elżbieta
Makowska Anita
Olejniczak Jarosław
Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities
Real Estate Management and Valuation
property tax reform
tax zoning
real estate market dynamics
e62
title Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities
title_full Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities
title_fullStr Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities
title_full_unstemmed Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities
title_short Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities
title_sort land and residential property taxation model concept of tax zoning in municipalities
topic property tax reform
tax zoning
real estate market dynamics
e62
url https://doi.org/10.2478/remav-2025-0014
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AT bernardellimichał landandresidentialpropertytaxationmodelconceptoftaxzoninginmunicipalities
AT malinowskamisiagelzbieta landandresidentialpropertytaxationmodelconceptoftaxzoninginmunicipalities
AT makowskaanita landandresidentialpropertytaxationmodelconceptoftaxzoninginmunicipalities
AT olejniczakjarosław landandresidentialpropertytaxationmodelconceptoftaxzoninginmunicipalities