Area-Based Banding for Property Tax Assessment in Transitional Countries: An Empirical Investigation

Abstract

This paper examines the potential applicability of an area banding approach in those situations where real estate data and other resources are scare. The purpose is to investigate the efficacy of property tax banding with respect to transitional countries, and to test this, a number of municipalities in Kosovo are used. The banding exercise is based on the actual floor area of the property. This will illustrate the potential application of banding properties within ‘area bands' as opposed to providing single point estimates of value. The paper also addresses important research questions that may have significant implications in the design of property tax systems within both transitional and developing countries.