Do local governments follow their neighbours’ tax strategies? Tax mimicking amongst Polish municipalities

Maria Trojanek, Wojciech Kisiala and Radoslaw Trojanek

Land Use Policy, 2021, vol. 108, issue C

Abstract: In this study, we identified the spatial property tax mimicking phenomenon at the local government level in Poland. The database used in the research contained data characterizing each of the 2479 municipalities (all of the municipalities in Poland) in terms of their real estate tax revenues and the effects of reducing the upper tax rates between 2003 and 2017. Spatial autocorrelation and spatial regression models were used to identify the scale of tax mimicking amongst municipalities in Poland and the process of making the real estate tax policies increasingly similar to each other. Municipalities with similar tax rate reduction index values were grouped into clusters. In most of the clusters, high values in a given municipality were accompanied by high values in neighbouring municipalities, whereas low values were accompanied by low values. This indicates the existence of the tax mimicking phenomenon.

Keywords: Property tax; Tax mimicking; Spatial dependence; Poland (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:108:y:2021:i:c:s0264837721002994

DOI: 10.1016/j.landusepol.2021.105576

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