Question

Suppose that the province of Nova Scotia currently has a property tax that imposes the same tax rate on land and structures in the province. The provincial government has recently decided to increase the tax rate on land and remove the tax on structures.

a) Analyze the consequences of the decision on landowners, tenants, government, and the community (society) of the province, using the traditional view on the property tax. Use suitable diagrams to illustrate.

b) Analyze the consequences of the decision using the new view of the property tax.

Answer 1

Answer :

1):- On the off chance that the area of Nova Scotia has as of late chose to expand the tax rate on land and evacuate the tax on structures, its effect according to the traditional view will be as per the following :-

According to the traditional view of the property tax, the tax on the land is borne by the landowner and the tax on the property is borne by the occupant.

For this situation since the government is going to charge full tax on the land and evacuate the tax on the structures, this will build the tax for the landowners and reduce the cost for the occupants. For government there will be no adjustment in the tax assortment. This can be introduced as follows :-

2):- According to the new view of the tax, the tax is required the nation over and it's the proprietor of the land and property who should bear the tax weight of the land and property.

***Kindly please rate the answer..Hope it helps you***