Issues Affecting Revenue Performance: Appropriate Residential Taxes given Land Scarcity and Maintenance

Abstract

Housing taxation has long been a crucial tool for governments to balance fiscal needs, ensure equitable wealth distribution, and regulate the use of limited urban land. This research examines the legal and economic dimensions of optimal housing taxation in contexts where land scarcity and maintenance obligations significantly shape property values and social welfare. By integrating principles of public finance, property law, and urban policy, the study highlights how taxation frameworks can be designed to discourage speculative landholding, promote efficient land use, and incentivize regular housing maintenance. It explores the challenges posed by escalating land scarcity, particularly in densely populated regions, and the legal mechanisms required to address unequal access to housing. Further, it evaluates how maintenance-related regulations and tax incentives can reduce deterioration of housing stock, enhance environmental sustainability, and support long-term urban resilience. The paper argues that a balanced legal framework—combining progressive property taxation, land value capture, and maintenance-based incentives—can contribute to both economic efficiency and social justice. Ultimately, the study proposes a model of housing taxation that recognizes land as a finite resource, ensures accountability in property upkeep, and strengthens the right to adequate housing within a sustainable legal and policy framework.