IDEAS home Printed from https://ideas.repec.org/a/aiy/jnljtr/v7y2021i1p6-19.html
   My bibliography  Save this article

Individual property tax to fund public transport

Author

Listed:
  • Evgenii V. Leontev
  • Yulia V. Leontyeva

Abstract

Efficient and reliable public transport is of prime concern to city dwellers. To function efficiently, public transport generally needs subsidies from the state or local government. Our goal was to design and develop an alternative model of property tax that would provide financing for public transport. It was hypothesised that if the market value of real estate depends on the proximity of public transport, property tax can be a reliable source of financing for public transport. Based on the hedonic pricing theory, we used multiple regression to measure the impact of public transport proximity on the value of residential property. The data on the market value of property and property tax was taken from statistical tax reporting forms of the Federal Tax Service. The data on various public transport infrastructure facilities was used from the specialized open registers. We tested our alternative model of property tax, using the case of the Ekaterinburg Metro and the Tram and Trolleybus Company, through regression analysis of 7,685 objects of residential property in the City of Ekaterinburg. It was found that the efficiency of the underground service is higher than that of the city’s tram network. On the average, the proximity of underground stations increases the value of housing by over 6%. As predictive estimation of the amount of tax determined by the proximity of public transport showed, the alternative model of property tax is sufficient to cover capital expenditures of the city’s public transport operators and could, therefore, contribute to further expansion and modernization of the transport network.

Suggested Citation

  • Evgenii V. Leontev & Yulia V. Leontyeva, 2021. "Individual property tax to fund public transport," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 7(1), pages 6-19.
    • Handle: RePEc:aiy:jnljtr:v:7:y:2021:i:1:p:6-19
    DOI: http://dx.doi.org/10.15826/jtr.2021.7.1.087
    as

    Download full text from publisher

    File URL: https://jtr.urfu.ru/fileadmin/user_upload/site_15907/2021/Leontev_Leontyeva.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15826/jtr.2021.7.1.087?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Agnar Sandmo, 2011. "The Scale and Scope of Environmental Taxation," Chapters, in: Emilio Albi & Jorge Martinez-Vazquez (ed.), The Elgar Guide to Tax Systems, chapter 8, Edward Elgar Publishing.
    2. Aaron, Henry & McGuire, Martin, 1970. "Public Goods and Income Distribution," Econometrica, Econometric Society, vol. 38(6), pages 907-920, November.
    3. Anthony B. Atkinson & Joseph E. Stiglitz, 2015. "Lectures on Public Economics Updated edition," Economics Books, Princeton University Press, edition 2, number 10493.
    4. Stephen Malpezzi, "undated". "Hedonic Pricing Models: A Selective and Applied Review," Wisconsin-Madison CULER working papers 02-05, University of Wisconsin Center for Urban Land Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Proque, Andressa Lemes & Betarelli Junior, Admir Antonio & Perobelli, Fernando Salgueiro, 2022. "Fuel tax, cross subsidy and transport: Assessing the effects on income and consumption distribution in Brazil," Research in Transportation Economics, Elsevier, vol. 95(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bello Musa Zango & Sanni Mohammed Lekan & Mohammed Jibrin Katun, 2020. "Conventional Methods in Housing Market Analysis: A Review of Literature," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 8(1), pages 227-241, January.
    2. Stern, Nicholas, 2018. "Public economics as if time matters: Climate change and the dynamics of policy," Journal of Public Economics, Elsevier, vol. 162(C), pages 4-17.
    3. Eugene Smolensky & Leanna Stiefel & Maria Schmundt, 1977. "Adding In-Kind Transfers to the Personal Income and Outlay Account: Implications for the Size Distribution of Income," NBER Chapters, in: The Distribution of Economic Well-Being, pages 9-50, National Bureau of Economic Research, Inc.
    4. Vivien Lévy-Garboua, 1975. "L'analyse de surplus appliquée," Revue Économique, Programme National Persée, vol. 26(6), pages 987-1003.
    5. Stefan Sebastian Fahrländer, 2006. "Semiparametric Construction of Spatial Generalized Hedonic Models for Private Properties," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(IV), pages 501-528, December.
    6. Carlos Marmolejo-Duarte & Ai Chen, 2019. "The Uneven Price Impact of Energy Efficiency Ratings on Housing Segments. Implications for Public Policy and Private Markets," Sustainability, MDPI, vol. 11(2), pages 1-23, January.
    7. Wolfgang Buchholz & Wolfgang Peters, 2007. "Justifying the Lindahl solution as an outcome of fair cooperation," Public Choice, Springer, vol. 133(1), pages 157-169, October.
    8. Gonzalez, Felipe & Prem, Mounu, 2020. "Police Repression and Protest Behavior: Evidence from Student Protests in Chile," SocArXiv 3xk5r, Center for Open Science.
    9. Jianjun Miao & Pengfei Wang & Tao Zha, 2020. "Discount Shock, Price–Rent Dynamics, And The Business Cycle," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(3), pages 1229-1252, August.
    10. André de Palma & Gordon M. Myers & Yorgos Y. Papageorgiou, 2023. "Imperfect public choice," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(4), pages 1413-1429, November.
    11. Ashton, John K. & Hudson, Robert S., 2017. "The price, quality and distribution of mortgage payment protection insurance: A hedonic pricing approach," The British Accounting Review, Elsevier, vol. 49(2), pages 242-255.
    12. Valdivia, Martín, 2009. "Contracting the Road to Development: Early Impacts of a Rural Roads Program," Research Department working papers 203, CAF Development Bank Of Latinamerica.
    13. Robert Scherf & Matthew Weinzierl, 2020. "Understanding Different Approaches to Benefit‐Based Taxation," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 385-410, June.
    14. Varun Sharma, 2016. "Benefit Incidence of Public Expenditure in Health: A study of Karnataka," Working Papers id:10984, eSocialSciences.
    15. Thanos Catsambas, 1982. "Substitutability, Separability, and the Distributional Implications of Public Goods," Public Finance Review, , vol. 10(3), pages 333-353, July.
    16. Cellmer Radosław, 2023. "Points of Interest and Housing Prices," Real Estate Management and Valuation, Sciendo, vol. 31(1), pages 69-77, March.
    17. Christos Koutsampelas & Panos Tsakloglou, 2011. "Short-run distributional effects of public education in Greece," University of Cyprus Working Papers in Economics 12-2011, University of Cyprus Department of Economics.
    18. José Ignacio Gobernado Rebaque, 2003. "Un análisis de incidencia fiscal municipal: Efectos redistributivos de los presupuestos de los ayuntamientos de Castilla y León," Hacienda Pública Española / Review of Public Economics, IEF, vol. 166(3), pages 85-111, September.
    19. Udo Ebert & Georg Tillmann, 2007. "Distribution-neutral provision of public goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 29(1), pages 107-124, July.
    20. Timothy Smeeding, 1984. "Approaches to Measuring and Valuing In-Kind Subsidies and the Distribution of Their Benefits," NBER Chapters, in: Economic Transfers in the United States, pages 139-176, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnljtr:v:7:y:2021:i:1:p:6-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.