Factors Affecting Land and Building Taxes

Abstract

This article explores factors determining Land and building tax burdens levied firstly in 2020. Data were compiled systematically from eight local government areas, comprising 1,414 taxpayers from all types of land and building usages. Findings show that tax burdens depend upon land and buildings’ assessed values, economic usages, and communal characteristics. Notwithstanding, tax burdens will decline based on tax reductions and several exemptions. Besides, the author finds that land and building tax incidence tend to be unequal. Large enterprises, apartment and residential businesses and vacant lands gain more advantageous tax preferences than the others. The findings suggest that legislators and those concerned review the law and make essential amendments against the emerging tax inequality and local revenue decline.