Taxing real estate especially property taxes holds a lot of potential to improve the municipalitys fiscal health, reduce inequality, and contribute to improving the conditions and regularization of informal settlements in Latin America, according to a new book published by the Lincoln Institute of Land Policies. Nevertheless, the book, Property Tax Systems in Latin American and the Carribbean, edited by Claudia M. De Cesare, recognizes that this instrument has been poorly explored as a source of income.
On average, the tax represents only 0.33 percent of Latin Americas GDP, compared to more than 4 percent in the United Kingdom and an average of almost 2 percent in the 35 countries of the Organization for Economic Development and Cooperation (OECD). The low tax rate on real estate holdings in the region is due, in part, to administrative weaknesses.
Despite these challenges, there is a….. Continue reading article here
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