Urban Property and Land Taxation in Argentina: The Challenge of Decentralization

The unsatisfactory operation of the fiscal federalism in Argentina has resulted in new reform initiatives to reduce the imbalances between collections of own resources and expenditures between the central and sub-national government levels. The objective of this study is to evaluate the advantages a...

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Autores principales: Goytia, Cynthia, Cristini, Marcela
Formato: Documento de trabajo
Lenguaje:Inglés
Publicado: Lincoln Institute of Land Policy 2025
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Acceso en línea:https://repositorio.utdt.edu/handle/20.500.13098/13416
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spelling I57-R163-20.500.13098-134162025-06-03T05:02:49Z Urban Property and Land Taxation in Argentina: The Challenge of Decentralization Goytia, Cynthia Cristini, Marcela Descentralización Decentralization Tributación Taxation Desarrollo urbano Urban development The unsatisfactory operation of the fiscal federalism in Argentina has resulted in new reform initiatives to reduce the imbalances between collections of own resources and expenditures between the central and sub-national government levels. The objective of this study is to evaluate the advantages and disadvantages of decentralizing the organization and collection of the Urban Property and Land Tax from the provincial governments to the medium sized cities of Argentina, to increase the revenues, improve the local government accountability, and create larger fiscal space for local management of urban development. As a first step of the analysis we reviewed the extensive literature on international and Latin-American cases on decentralization of this tax to develop a framework against which to compare the Argentine situation and the proceedings of a proposal for reform. Our second step was to elaborate an ex-ante simulation model for medium sized cities of Argentina to estimate the potential benefits of decentralization comparing the revenues collected by the provincial government under a centralized organization and the ones collected by the municipal governments. We also explored new sources to widen the scope of the Property Tax. Our results showed that there is space to increase the collection of this tax by improving its administration. In practical terms, the collection of the Property Tax in Argentina is very responsive to increases in: the property valuation, the rate of the tax, and the rate of effective collection. Gains for reduction in the informal tenure are less important since they affect low value properties. In a scenario where tax reform is urgently needed, the decentralization of the Urban Property Tax could be considered as a good first step in the right direction. However, we also pointed out that the Provinces that potentially concentrate most of the gains will need to implement institutional changes to proceed with the Property Tax decentralization. Lincoln Institute of Land Policy 2025-06-02T20:14:00Z 2017-08 info:eu-repo/semantics/workingPaper https://repositorio.utdt.edu/handle/20.500.13098/13416 eng Lincoln Institute of Land Policy - Working Papers Argentina info:eu-repo/semantics/restrictedAccess http://rightsstatements.org/page/InC/1.0/?language=es 50 p. application/pdf application/pdf
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Descentralización
Decentralization
Tributación
Taxation
Desarrollo urbano
Urban development
spellingShingle Descentralización
Decentralization
Tributación
Taxation
Desarrollo urbano
Urban development
Goytia, Cynthia
Cristini, Marcela
Urban Property and Land Taxation in Argentina: The Challenge of Decentralization
topic_facet Descentralización
Decentralization
Tributación
Taxation
Desarrollo urbano
Urban development
description The unsatisfactory operation of the fiscal federalism in Argentina has resulted in new reform initiatives to reduce the imbalances between collections of own resources and expenditures between the central and sub-national government levels. The objective of this study is to evaluate the advantages and disadvantages of decentralizing the organization and collection of the Urban Property and Land Tax from the provincial governments to the medium sized cities of Argentina, to increase the revenues, improve the local government accountability, and create larger fiscal space for local management of urban development. As a first step of the analysis we reviewed the extensive literature on international and Latin-American cases on decentralization of this tax to develop a framework against which to compare the Argentine situation and the proceedings of a proposal for reform. Our second step was to elaborate an ex-ante simulation model for medium sized cities of Argentina to estimate the potential benefits of decentralization comparing the revenues collected by the provincial government under a centralized organization and the ones collected by the municipal governments. We also explored new sources to widen the scope of the Property Tax. Our results showed that there is space to increase the collection of this tax by improving its administration. In practical terms, the collection of the Property Tax in Argentina is very responsive to increases in: the property valuation, the rate of the tax, and the rate of effective collection. Gains for reduction in the informal tenure are less important since they affect low value properties. In a scenario where tax reform is urgently needed, the decentralization of the Urban Property Tax could be considered as a good first step in the right direction. However, we also pointed out that the Provinces that potentially concentrate most of the gains will need to implement institutional changes to proceed with the Property Tax decentralization.
format Documento de trabajo
author Goytia, Cynthia
Cristini, Marcela
author_facet Goytia, Cynthia
Cristini, Marcela
author_sort Goytia, Cynthia
title Urban Property and Land Taxation in Argentina: The Challenge of Decentralization
title_short Urban Property and Land Taxation in Argentina: The Challenge of Decentralization
title_full Urban Property and Land Taxation in Argentina: The Challenge of Decentralization
title_fullStr Urban Property and Land Taxation in Argentina: The Challenge of Decentralization
title_full_unstemmed Urban Property and Land Taxation in Argentina: The Challenge of Decentralization
title_sort urban property and land taxation in argentina: the challenge of decentralization
publisher Lincoln Institute of Land Policy
publishDate 2025
url https://repositorio.utdt.edu/handle/20.500.13098/13416
work_keys_str_mv AT goytiacynthia urbanpropertyandlandtaxationinargentinathechallengeofdecentralization
AT cristinimarcela urbanpropertyandlandtaxationinargentinathechallengeofdecentralization
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