RICS L A N D JO URN A L
L A N D R I G H TS
Top 10 valuation benefits 1. It supports evidence of land tenure security for people. 2. This information is a check against fraudulent land sales, as the valuation roll is a reference point for individuals’ responsibility to pay tax. 3. Valuation information serves to confirm collateral asset important in receiving credit. 4. It supports courts when arbitrating land disputes or with estates rulings. 5. Land and property, and the economic value from land resources (such as agriculture crops) may be insured, as based on the value of the resource.
n engendering an understanding of the
6. It creates a clear picture of the land base for a jurisdiction: how much land there is, who has what rights, and how much the land is worth. 7. Data aids planning and policy making by allowing for highly targeted government services and infrastructure spend. 8. Compensation for compulsory acquisition or for eminent domain claims, may be more fairly and equitably decided, including other tenure forms, such as customary rights. 9. Transparency may be improved to share the derived value of other land resources, such as timber, minerals, or agriculture commodity types, including biodiversity. 10. To establish a taxable rate and tax roll to implement a fair and equitable property tax system. 26 DECEMBER 2015 / JANUARY 2016
benefit of the formal system. The African Tax Institute summarised this point in its recent report How property tax would benefit Africa. “The future of African national and municipal governments will depend on institutions and tax policy that are equitable, improve local service delivery and encourage compliance through establishing a social contract between taxpayers and the state. Property tax is one of the more effective means of realising these goals.”
Future applications Thomson Reuters commissioned the report to add to the professional body of knowledge so it can, in partnership with governments, better assist design, fund, plan for, and support modernisation. The KPMG approach has great applicability for other governments, especially in the 3S framework. Practical applications include: bb measuring the sustained effectiveness, relevance, and efficiency of a valuation system bb refine future interventions to scale such as permitting knowledge sharing among government departments for more efficient government planning enhance a valuation department’s Images ©
understanding of the system and how it contributes to improving security (be it land security, market trust, or formalisation). It has been recognised, such as through research Thomson Reuters conducted with the US National Association of Counties, that deeper and better analytics is a top technology trend for governments. What we are now seeing is only the tip of the iceberg for societal and government-wide gains related to the use of authoritative valuation information. b n To read the KPMG Cape Town study, visit http://tmsnrt.rs/1KZsaiv Christopher Barlow is Director, Strategic Relations and Communications at Thomson Reuters Christopher.barlow@ ThomsonReuters.com
Related competencies include Cadastre and land management, Taxation, Property records and information Image © Shutterstock