Local property taxation in Italy: a difficult balance between decentralization and redistribution

Author/s Giovanna Messina, Marco Savegnago
Publishing Year 2016 Issue 2015/3 Language Italian
Pages 25 P. 5-29 File size 313 KB
DOI 10.3280/EP2015-003001
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The paper traces recent developments in local real estate taxation in Italy.  We exploit a rich dataset at both aggregate and individual level to estimate the variation in local taxes on first homes in the last three years and the redistributive impact of the adoption of the tax on indivisible services in 2014. Local property taxes on first homes average one fifth lower in 2014 than in 2012; including waste disposal taxes, the overall local fiscal burden remains broadly stable. However, taxation bears more heavily on lower-income households, owing to decreased allowance for tax deductions. To conclude, the paper examines possible future local property tax reform measures (keeping total revenue constant) to enhance transparency and equity.

Keywords: property taxation; fiscal decentralisation; redistribution

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Giovanna Messina, Marco Savegnago, Le imposte sulla prima casa in Italia, un equilibrio difficile fra decentramento e redistribuzione in "ECONOMIA PUBBLICA " 3/2015, pp 5-29, DOI: 10.3280/EP2015-003001