Overview of this submission
This document responds to the call for submissions with regard to the implementation of a property tax that is both simple to administer and fair.
However the basis for this submission is that the introduction of a Site Value Tax (SVT) as an alternative to a property tax can achieve all of the outlined objectives in a far more efficient and equitable manner than a property tax. At a basic level as required by this call, SVT is an effective and efficient way of taxing assets as an alternative to a building-based property tax. As well as this SVT has the potential for much deeper integration into our taxation system; by adjusting the rate at which SVT is applied it can provide an alternative to income tax, VAT and many other taxes.
“A gradual shift of the tax base away from taxing what we want more of, such as investment and labour, towards taxing what we want less of, such as pollution, would help contribute to the Government’s objective of creating a resource-efficient and smart green economy”.
“The OECD recommends the phasing out of all environmentally harmful subsidies and the replacement of some current taxes with appropriate environmentally related fiscal measures in the framework of a comprehensive environmental tax reform.”
By adjusting the rate at which a SVT is applied it can be very flexible and provides an excellent tool for ‘taking up the slack’ as the tax base is shifted, as well as promoting sustainable land use patterns.
“We consider that there is a sound economic rationale for considering the introduction of
a land or site value tax” Given the ‘sound economic rationale for considering a land or site value tax’ the opinion expressed in this submission is that It would be very short sighted not to adopt a system that promises long term equity simply to avoid having to address the potential for short-term complications arising during a period of establishment.
The Tax Commission made their recommendation before the publication of The Ronan Lyons Report commissioned by Smart Taxes. This document provides an assessment of existing data sources and outlines the process towards the integration and the implementation of the tax. This submission draws heavily on the content of the Lyons report