Committee for Finance and Personnel Report (2007-2011 Mandate)
Research Paper: Follow up to Committee Meeting 10/10/07
Research and Library Services
Follow up to Committee Meeting 10/10/07
Is there any international evidence to suggest that the choice of local government taxation (property vs. income) is related to the degree of home ownership?
- The table below shows the proportion of home ownership for countries in rank order, and the main source of local taxation revenue associated with each;
- There appears to be some evidence of an association between high degrees of home ownership and the use of local property taxation.
- However, Italy, Finland, Belgium and Sweden are all countries where homeowners are in the majority, yet they use local income taxation. Additionally, countries with a comparative ‘rental’ culture, such as France and the Netherlands, use local property taxation.
| Rank | Country | Proportion of Homeowners 1. | Main Local Tax Source |
|---|---|---|---|
|
1 |
Ireland |
83% |
Property |
|
2 |
Italy |
78% |
Income |
|
3 |
Australia |
69% |
Property |
|
4 |
UK |
69% |
Property |
|
5 |
Finland |
67% |
Income |
|
6 |
Canada |
67% |
Property |
|
7 |
US |
65% |
Property |
|
8 |
Belgium |
65% |
Income |
|
9 |
Japan |
60% |
Mixture |
|
10 |
Sweden |
60% |
Income |
|
11 |
France |
54% |
Property |
|
12 |
Denmark |
53% |
Income |
|
13 |
Netherlands |
49% |
Property |
|
14 |
Germany |
43% |
Income |
1. The figures are based upon home ownership as a percentage of all households, using data for 2000.
