Land and Residential Property Taxation Model. Concept of Tax Zoning in Municipalities

Felis Paweł (), Michał Bernardelli, Malinowska-Misiąg Elżbieta (), Makowska Anita () and Olejniczak Jarosław ()
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Felis Paweł: SGH Warsaw School of Economics, 142 Niepodległości Avenue, 02-554 Warsaw, Poland
Malinowska-Misiąg Elżbieta: SGH Warsaw School of Economics, 142 Niepodległości Avenue, 02-554 Warsaw, Poland
Makowska Anita: Wrocław University of Economics and Business, Komandorska 118/120 Street, 53-345 Wrocław, Poland
Olejniczak Jarosław: Wrocław University of Economics and Business, Komandorska 118/120 Street, 53-345 Wrocław, Poland

Real Estate Management and Valuation, 2025, vol. 33, issue 2, 39-54

Abstract: Analysis of the current property tax structure, which is calculated in proportion to the area of land and buildings, leaves no doubt that this is not an appropriate solution in terms of tax efficiency and equity. Property tax reform is necessary; however, the concept of ad valorem tax is challenging to introduce and implement. An alternative to value-based property tax could be the concept of tax zoning, particularly in heterogeneous urban areas. This would partially expand existing legal regulations, which allow for differentiating tax rates for different types of taxable items, particularly considering their location. The article presents this concept as one that could effectively replace the existing residential property taxation system in a short time. Due to the significant socio-economic diversity of urban units, it is necessary to identify factors reflecting their specificity. The article attempts to quantify the criteria considered significant for residents of Polish cities. A combination of various measures allowed for the indication of the potential effects, both fiscal and non-fiscal. The proposed concepts were validated through empirical analysis based on data from publicly accessible databases. The research results emphasize the importance of the precise design of the property tax system, which can have significant consequences for the dynamics of the real estate market.

Keywords: property tax reform; tax zoning; real estate market dynamics (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:33:y:2025:i:2:p:39-54:n:1004

DOI: 10.2478/remav-2025-0014

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