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Measurement issues
Until now, no harmonised data on property tax
revenues have been made available on a regular basis
for all EU Member States, as the ESA95 system of
national accounts does not foresee a specific category
for this type of taxes. Data are available only for OECD
Members, leaving out six EU Member States. Housing
prices, too, are difficult to measure owing to the special
characteristics (heterogeneity, infrequent sale and
negotiated prices; see Thwaites, Wood, 2003);
available
statistics
often
follow
different
methodologies.
Given the policy importance of property taxes, it has
been decided to include in this year's edition of the
report an overview of property tax revenue in general
with a special focus on recurrent taxes on immovable
properties for the entire EU. The approach taken was
bottom-up, aggregating property-related taxes in the
National Tax List (ESA 95) by applying the OECD
classification (see Box 2.1 for more details). Two
subgroups were identified recurrent and other taxes.
While the former concerns only immovable property
the latter includes also other taxes such as stamp taxes
and capital levies. In practice, these taxes are found
under the ESA95 categories D.29A and D.59A for
recurrent taxes on immovable property and D.91A, B
and D.214B, C for non-recurrent taxes - property
levies.
(26) Eichengreen and Bordo (2003) find that all major banking crises in industrial
countries during the postwar period coincided with housing price busts. n
addition,
27
( ) See Claessens, Stijn, M. Ayhan Kose, and Marco E. Terrones, 2008, What
Happens During Recessions, Crunches and Busts?, IMF Working Paper No.
08/274.
28
( ) Reinhart, C., Rogoff, K., This time is Different: Eight Centuries of Financial
Folly, Oxford and Princeton: Princeton University Press, 2009.
45