In this episode, we're joined by Paul Sanderson, President of the International Property Tax Institute (IPTI). We talk about optimal property taxation and best practices, theoretical vs practical challenges in taxation and assessment, as well as the famous Land Value Tax.

We cover:

• Introduction to Assessment Matters podcast 00:00

• Paul’s bio and big ideas 00:35

• • Paul’s background in assessment and valuation

• What is IPTI? 2:05

• • Not-for-profit organization providing of advice, guidance, and training for everything property tax

  • Completely and strictly impartial

  • Meeting the education and advisory needs of a wide variety of stakeholders

• Fundamental characteristics of a good property tax system 4:12

• • Key principles: Simplicity, Fairness, Consistency, Transparency

  • Most property tax systems are unnecessarily complicated

  • Second-order effects on compliance, media coverage, etc.

• Ideal systems vs real-world challenges 10:45

• • Ideal world: getting rid of exemptions, abatements, appeals

  • Reality: various constituencies and special interests with exemptions and other favored tax treatments opposing ending said subsidies

  • Systems become more complex, opaque, and unfair

• More on optimal property taxation: the Land Value Tax 16:53

• • Relevant literature: “Progress & Poverty” by Henry George

  • Economic case: minimizes distortions and development biases

  • Principle case: the value is generated not by the landowner but rather by society

  • “(Straightforward) land value tax” versus “land value capture”

  • Practical issues of valuation and assessment — determining “unimproved” land value in already highly improved/developed areas

  • Example: the strengths and limits of Australia’s state land tax

• Property tax systems around the world 25:58

• • IPTI-COST Scorecard

  • Many different relevant metrics for comparison, based on key principles

  • https://www.ipti.org/press-release-ipti-cost-scorecard

• Finding more about IPTI 28:51

• • https://www.ipti.org