Achieving Fair Property Tax Valuations with Geospatial Modeling & International Valuation Standards: A Case Study of the Moldova Real Estate Market

Paul Bidanset, Aanchal Anand, Daniel Fasteen, Olga Buzu, Peadar Davis, Margie Cusack

Inaccurate real estate valuations used for ad valorem or value-based property tax calculations potentially lead to a variety of costs, both financial and other, for tax payers and governments alike. In extreme instances, such inaccuracies may result in lack of acceptance and participation in developing and transitioning countries, and the political implications of inequitable taxation may have adverse effect on careers of elected and appointed officials. More common are increased costs in time, staff, and, in some cases, legal fees. Many governments are even imposed with acceptability thresholds to promote fairness, equitability and overall government accountability with respect to valuation. More accurate, research-backed valuations help governments promote fairness, accuracy and defensibility in their assessments, resulting in higher property tax acceptance and participation, fewer appeals, more appeals settled out of court, and more court cases won – promoting a healthy source of stable and predictable government revenue able to fund education, and quality of life. By increasing the accuracy of valuationmodels, this research aims tomitigate the financial costs and political ramifications of subpar valuations by providing a replicable tool for governments with similar data and technical capabilities. This research will present the latestmethodological techniques in use for value-based property taxation in mature markets like the United States, and it will be the first of its kind to test the applicability and usability of these models and techniques outside the United States: in the Republic of Moldova, a former Soviet Republic that gained independence in 1992.

Event: Land Governance in an Interconnected World_Annual World Bank Conference on Land and Poverty_2018

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Document type:Achieving Fair Property Tax Valuations with Geospatial Modeling & International Valuation Standards: A Case Study of the Moldova Real Estate Market (108 kB - pdf)