Property valuation principles – How policy changes can be detrimental to urban development

Local government units rely primarily on their own revenues for financing, with sources varying in fiscal efficiency and functions. Key among these are local fees and property taxes, crucial for municipal income in most developed economies. In regions without ad valorem taxes, alternatives like betterment levies on changes in real estate structures are used. Property valuation principles, which define the scope and methods, are critical and often impact urban development. This article investigates how legal adjustments in property valuation for betterment levies affect municipal revenues and urban development policies.