[sustran] Re: FW: Land Value Taxation Event 23/04/03

[Karl Fjellstrom]

Dear Paul & Craig, sorry for the delayed response.

Bogota implemented a value capture scheme along the TransMilenio
(www.transmilenio.gov.co) lines which was apparently (according to the
Mayor of the time) successful in recouping some of the windfall gains
which accrued to land ownwers along the TransMilenio route. This value
capture is an important part of the funding arrangement for the ongoing
expansion of the system.

The COO of Bangkok's Skytrain system in March gave a presentation to the
Thai-German Chamber of Commerce where he outlined major increases in
property values in proximity to the Skytrain stations; especially for
commercial premises like shopping malls. Responding to a question, he
said however that there was no plan for any kind of tax/charge to
capture the windfall gains to the owners of these premises, but that
they to some extent capture these gains by imposing charges for the
commercial premises to establish walkway connections to the Skytrain
stations.

Similarly in Brisbane, when it is proposed to the transit officials
express strong interest in some form of value capture to fund system
expansion, though nothing like that has been implemented there. What's
the catch? Here's my conspiracy theory: there is often an incredible
dearth of transparency and open debate surrounding all issues of mass
transit system cost, especially when it comes to rail metros. It's only
when there is no financial black hole to hide, such as in Bogota's bus
rapid transit system, that you might see these options openly canvassed.
(Political commitment helps too, of course...)

Regards
Karl Fjellstrom

-----Original Message-----
From: owner-sustran-discuss at jca.ax.apc.org
[mailto:owner-sustran-discuss at jca.ax.apc.org] On Behalf Of Craig
Townsend
Sent: Tuesday, 15 April 2003 10:58 AM
To: sustran-discuss at jca.ax.apc.org
Subject: [sustran] Re: FW: Land Value Taxation Event 23/04/03


Dear Paul,

I can tell you that in Thailand, land ownership is concentrated in the 
hands of a very rich elite which tends to be exempt from taxation and
often 
holds powerful positions. In Bangkok, there is no land valuation based
on 
market values, and no progressive land tax. Transport infrastructure
projects 
become a way of increasing private land values and private wealth. The
lack of 
accurate information about land values (and bubble real estate market) 
contributed to the financial crisis that began in 1997 and spread to 
neighbouring countries. The World Bank attempted to build land valuation

capacity in Thailand in the wake of the crisis: I'm not sure if it was 
successful, but I doubt it. These matters are more political than
technical. I 
would be interested to hear whether land value taxation exists in any
other 
low or middle income cities. What about in Jakarta and KL?

Craig


Quoting Paul Barter <geobpa at nus.edu.sg>:

> Dear sustran-discussers
> Any thoughts on this topic of using land value taxation to help fund 
> transport infrastructure below as it might apply in low-income or 
> middle-income contexts? Does anyone know of successful cases in Asia 
> or Latin America (or anywhere for that matter)? What's the catch? Paul