Property Tax Reform and Urban Transformation: Global Perspectives and Policy Implications

Abstract

Property tax plays a critical role in urban development, particularly in addressing fiscal disparities, guiding land use, and promoting spatial equity. This narrative review explores the evolving role of property taxation in cities by synthesizing evidence from global case studies and policy evaluations. Using data from academic databases such as Scopus, JSTOR, Web of Science, and Google Scholar, literature was collected through targeted keyword searches focused on "property tax," "urban development," and "municipal finance." Inclusion criteria emphasized empirical studies related to tax policy, governance, and urban outcomes. Findings reveal that well-structured property tax systems can reduce inter-regional fiscal inequalities, enhance land value through improved infrastructure, and support inclusive planning. However, systemic barriers such as poor administrative capacity, fragmented valuation methods, and limited public participation hinder the effective implementation of tax regimes. Case studies from Ghana, South Korea, Rwanda, and China demonstrate that innovative reforms, including digital cadastral tools and participatory governance, can overcome these challenges. Furthermore, progressive taxation models help mitigate gentrification and support equitable service delivery in marginalized communities. The review concludes that integrated, transparent, and inclusive property tax systems are essential for sustainable urban governance. Future research should examine the political economy of tax policy and explore long-term impacts on urban equity and land markets.