Improving rural property tax instruments: A case study of Sinaloa, Mexico

Nicolás Guadalupe Zúñiga-Espinoza, Alfonso Reyna-Parra, Narce Dalia Reyes-Pérez

Article ID: 3457
Vol 8, Issue 3, 2024

VIEWS - 144 (Abstract) 121 (PDF)

Abstract


The objective of this work on the Rural Property Tax is to make a proposal to improve the instruments for statistical information on both income and investment spending. A qualitative methodology is proposed to make transparent from which community the tax is generated and how to decide the expenditure in public works for rural communities. Finally, public policy recommendations are made such as the suggestion that investment spending should not be concentrated in a small group of communities but should be distributed strategically for the well-being of the rural population. In this regard, it is important that the municipal government reaches agreements with ejido commissaries, syndics and commissaries so that there is a positive economic, social, cultural and political impact. Likewise, the creation of fiscal observatories to follow up on the route of income generated by the tax and the investment spending executed with the said resources. Truth is that the great importance of this tax for Sinaloa’s municipal public finances has not yet been fully appreciated. Among the findings was the preferential treatment given to taxpayers engaged in aquaculture and vegetable exports by paying a lower rate than that established in the law; while agricultural and livestock activities pay a higher rate; there is also a lack of transparency in the selection process of the communities that will benefit from investments for public works. Recommendations for future research may be to address how the public works bidding process is conducted; what experiences exist of tax observatories that monitor both the collection and the correct exercise of public expenditure of this tax; also explore why there is no public policy focused on benefiting the most marginalized communities in Sinaloa’s municipalities with public works.

Keywords


property tax; producers; tax base; income; expense

Full Text:

PDF


References


Baldoni, E., & Ciaian, P. (2023). The capitalization of CAP subsidies into land prices in the EU. Land Use Policy, 134, 106900. https://doi.org/10.1016/j.landusepol.2023.106900

Berset, S., & Schelker, M. (2022). Decentralization and Progressive Taxation. Public Finance Review, 51(2), 206–235. https://doi.org/10.1177/10911421221121029

El Debate (2022). 60 percent of taxpayers owe urban property tax in Culiacán. Available online: https://www.debate.com.mx/culiacan/El-60-por-ciento-de-contribuyentes-adeuda-predial-urbano-en-Culiacan-20220701-0048.html (accessed on 3 October 2023).

Fiscal Coordination Law. (2018) Chamber of Deputies of the Congress of the Union. Available online: https://www.diputados.gob.mx/LeyesBiblio/pdf/31_300118.pdf (accessed on 3 October 2023).

Geys, B., Heinemann, F., & Kalb, A. (2010). Voter involvement, fiscal autonomy and public sector efficiency: Evidence from German municipalities. European Journal of Political Economy, 26(2), 265–278. https://doi.org/10.1016/j.ejpoleco.2009.11.002

Institute for the Technical Development of Public Finances (INDETEC, 1988) Municipal Public Finance Magazine, No.52, December-January, pp. 60-61.

Kan, S., Chen, B., & Chen, G. (2023). Globalization of forest land use: Increasing threats on climate-vulnerable regions. Land Use Policy, 132, 106798. https://doi.org/10.1016/j.landusepol.2023.106798

Kim, T., & Nguyen, Q. H. (2019). The Effect of Public Spending on Private Investment*. Review of Finance. https://doi.org/10.1093/rof/rfz003

Keen, M., Slemrod, J. (2021). Rebellion, Rascals, and Revenue. https://doi.org/10.2307/j.ctv17nmzfd

Municipal Finance Law of the State of Sinaloa. (2023). Last amendment published in the P.O. No. 066, extraordinary edition. Available online: https://www.congresosinaloa.gob.mx/leyes-estatales/ (accessed on 3 October 2023).

Municipal Finance Law of the State of Sinaloa. (2022). Official Gazette of the Government of the State of Sinaloa P.O. No. 013, evening edition. Available online: https://www.congresosinaloa.gob.mx/leyes-estatales/ (accessed on 3 October 2023).

Moulton, S., Collins, J. M., Loibl, C., Haurin, D., & Brown, J. (2022). Property Tax Compliance and Reverse Mortgages: Using Nudges to Improve the Market. National Tax Journal, 75(1), 33–59. https://doi.org/10.1086/717160

National Institute of Statistics, Geography and Informatics (INEGI). (2022). Cuéntame-INEGI. Available online: https://www.cuentame.inegi.org.mx/territorio/division/default.aspx (accessed on 3 October 2023).

National Institute of Statistics, Geography and Informatics. (2023). Agricultural Census 2022. Available online: https://www.inegi.org.mx/programas/cagf/2022 (accessed on 3 October 2023).

Propheter, G. (2023). Partisanship and Property Tax Redistribution: Evidence from Repealing Colorado’s Gallagher Amendment. Public Finance Review, 51(5), 619–648. https://doi.org/10.1177/10911421231171760

Shah A. (2007). A Practitioner's Guide to Intergovernmental Fiscal Transfers. In: R. Boadway, A. Shah. Intergovernmental fiscal transfers: principles and practice. The World Bank, Washington D.C; 2007.

Smith A. (2014). Inquiry into the Nature and Cause of the Wealth of Nations. Fondo de Cultura Económica. Nineteenth reprint. Mexico.

Stiglitz J. (2000) The Economics of the Public Sector. Antonio Bosh Editor. Available online: https://www.google.com/search?client=firefox-b- &q=Stiglitz+Joseph+%282000%29+La+Econom%C3%ADa+del+Sector+P%C3%BAblico.+Antonio+Bosh+Editor (accessed on 3 October 2023).

The Window Tax. Land Lines, April. Lincoln Institute of Land Policy. Available online: https://www.lincolninst.edu/es/publications/articles/el-impuesto-sobre-la-ventana (accessed on 3 October 2023).

Van BN. (2023). The Relationship between Public Expenditure and Private Investment in Deloped and Developing Economies Policy Implications based on the Difference. Available online: https://hpe-rpe.org/wp-admin/admin-ajax.php?juwpfisadmin=false&action=wpfd&task=file.download&wpfd_category_id=227&wpfd_file_id=5170&token=49af4306bd46b67ddf4c07e92cb16271&preview=1 (accessed on 3 October 2023).

Zhang, P., & Nguyen‐Hoang, P. (2022). Home rule and municipal revenue stability: New evidence from Texas. Public Budgeting & Finance, 43(1), 38–60. Portico. https://doi.org/10.1111/pbaf.12332




DOI: https://doi.org/10.24294/jipd.v8i3.3457

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Nicolás Guadalupe Zúñiga-Espinoza, Alfonso Reyna-Parra, Narce Dalia Reyes-Pérez

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.