Using Satellite Imagery to Revolutionize Creation of Tax Maps and Local Revenue Collection

35 Pages Posted: 14 May 2018

See all articles by Daniel Ayalew Ali

Daniel Ayalew Ali

World Bank - Development Research Group (DECRG)

Klaus Deininger

World Bank - Development Economics Group (DEC); World Bank - Development Research Group (DECRG)

Michael Wild

World Bank; World Bank

Date Written: May 11, 2018

Abstract

The technical complexity of ensuring that tax rolls are complete and valuations current is often perceived as a major barrier to bringing in more property tax revenues in developing countries. This paper shows how high-resolution satellite imagery makes it possible to assess the completeness of existing tax maps by estimating built-up areas based on building heights and footprints. Together with information on sales prices from the land registry, targeted surveys, and routine statistical data, this makes it possible to use mass valuation procedures to generate tax maps. The example of Kigali illustrates the reliability of the method and the potentially far-reaching revenue impacts. Estimates show that heightened compliance and a move to a 1 percent ad valorem tax would yield a tenfold increase in revenue from public land.

Keywords: Agricultural Economics, Public Sector Economics, Public Finance Decentralization and Poverty Reduction, Macro-Fiscal Policy, Taxation & Subsidies, Economic Adjustment and Lending, Urban Housing and Land Settlements, Municipal Management and Reform, Urban Governance and Management, Urban Housing, Economic Theory & Research, Economic Growth, Industrial Economics, Transport Services

Suggested Citation

Ali, Daniel Ayalew and Deininger, Klaus and Wild, Michael, Using Satellite Imagery to Revolutionize Creation of Tax Maps and Local Revenue Collection (May 11, 2018). World Bank Policy Research Working Paper No. 8437, Available at SSRN: https://ssrn.com/abstract=3177232

Daniel Ayalew Ali (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Klaus Deininger

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/kdeininger

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Michael Wild

World Bank

1818 H Street, NW
Washington, DC 20433
United States

World Bank

1818 H Street, NW
Washington, DC 20433
United States

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