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On the role of the property tax in financing local expenditure: the case of Italy


  • Ernesto Longobardi

    () (University of Bari)


The paper discusses some issues concerning the local property tax in the light of the Italian experience. The main developments concerning the municipal property tax in Italy, since its introduction and until the most recent events, are briefly described. Then three main issues regarding the local property tax are addressed. First, the question whether there is any economic rationality in exempting owner occupied houses, a theme that has been central in the Italian debate and in the political arena in the last years; second, the long debated issue of whether the local property tax is a good benefit tax; and, finally, the possibility that a “residence tax”, levied on the occupant of the dwelling, would represent a better opportunity for implementing the benefit principle than the traditional property tax levied on the owners.

Suggested Citation

  • Ernesto Longobardi, 2015. "On the role of the property tax in financing local expenditure: the case of Italy," SERIES 06-2015, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Oct 2015.
  • Handle: RePEc:bai:series:series_wp_06-2015

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    Cited by:

    1. Edoardo, Di Porto & Ohlsson, Henry, 2016. "Avoiding Taxes By Transfers Within The Family," Working Paper Series 2016:4, Uppsala University, Department of Economics.

    More about this item


    property tax; benefit principle; tax reform; political economy;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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