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.

1. The figures are based upon home ownership as a percentage of all households, using data for 2000.