Tenure Neutral and Equitable Housing Taxation

22 Pages Posted: 3 Jul 2011

See all articles by Philippe Thalmann

Philippe Thalmann

Swiss Federal Institute of Technology Lausanne - Ecole Polytechnique Federale de Lausanne (EPFL)

Date Written: July 1, 2005

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.

Keywords: housing taxation, tenure choice, home ownership, owner-occupied housing, tax neutrality

Suggested Citation

Thalmann, Philippe, Tenure Neutral and Equitable Housing Taxation (July 1, 2005). Urban Studies, Vol. 44, No. 2, p. 275, 2007, Available at SSRN: https://ssrn.com/abstract=1877591

Philippe Thalmann (Contact Author)

Swiss Federal Institute of Technology Lausanne - Ecole Polytechnique Federale de Lausanne (EPFL) ( email )

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+41 21 693 7321 (Phone)

HOME PAGE: http://people.epfl.ch/philippe.thalmann

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