An expeditious model for equalization of municipal tax on real estate – an Italian case

The current difficulties of the Italian public budget are likely to lead it to exceed the European limit that sets a deficit not superior to 3% of the GDP. It seems that the council property tax regulations, adopted by Legislative Decree 102/2013 last August, will not be transformed into law. The regulations included the abolition of the council tax (IMU), which currently affects buildings in relation to their land value and not their market value. This study – developed in equal parts by the two authors – is based on the difference, abnormal in the Italian case, between these two values as well as the social and economic inequalities it generates. It proposes an expeditious model capable of reducing the inequality inherent in the mechanism of tax, ensuring the differentiation of the cadastral value at least with respect to the location of the housing, which - together with the construction characteristics – contributes to the diversification of the market value of the property.