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

[Eric Bruun]

I want to point out that in some places, public transport agencies are
specfically not allowed to use land value capture. It would take changes in
laws first.

Secondly, the lack of transparency about costs for public transport projects
is certainly not true in the US. The Federal government requires all kinds
of documentation about local/state contributions and about future operating
cost supports for public transport projects before it contributes. This is
then used by the highway lobby to point out how expensive public transport
is. But the truth is that there is no matching requirement for highway
projects, especially not about the operating and maintenance costs. This is
good for the highway lobby, because much of the operating support comes from
property taxes and general taxation, not from user taxes.

Eric Bruun

----- Original Message -----
From: "Karl Fjellstrom" <karl at dnet.net.id>
To: <sustran-discuss at jca.ax.apc.org>
Sent: Friday, May 23, 2003 5:05 AM
Subject: [sustran] Re: FW: Land Value Taxation Event 23/04/03


> 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
>
>
>
>