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" The Economic Impacts of the Idle Land Tax on the City of Riyadh Land Prices "
Alzamil, Najla
Kurban, Haydar
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Latin Dissertation
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English
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| Record Number
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1052004
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| Doc. No
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TL51121
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| Main Entry
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Alzamil, Najla
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| Title & Author
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The Economic Impacts of the Idle Land Tax on the City of Riyadh Land Prices\ Alzamil, NajlaKurban, Haydar
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| College
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Howard University
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| Date
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2019
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| Degree
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Ph.D.
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| student score
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2019
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| Note
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104 p.
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| Abstract
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At the beginning of 2017, a Land Value Tax was applied to undeveloped land in Riyadh city, Saudi Arabia. Land Value Tax (LVT) or, as it is called in Saudi Arabia Idle Land Tax, is an annual charge of 2.5% of the value of undeveloped land that is 10,000 m2 or more within city growth. LVT is supposed to eliminate speculation in the undeveloped land market and is designed to force landowners to sell or develop undeveloped land to avoid being taxed. The main goals of the Idle Land Tax system in Riyadh city is to increase the supply of developed land to reach equilibrium within urban growth, maintain affordable prices for residential housing, and eliminate monopolistic practices. The system was first enforced in Riyadh city as the initial stage of the program. This dissertation addresses the effectiveness of the system on reducing land prices within urban areas in Riyadh city and whether the system met its potential goals or instead became another source of government revenue. In order to measure and observe the changes to real estate prices after the changes were implemented the repeat sale methodology, a statistical method used to measure the price change of real estate over a period of time by evaluating different sales prices for the same property, was used. This estimated the index values by the regression of sale prices, using regression coefficients to obtain the index values. Moreover, the number of starting building permits in the city of Riyadh was considered as an indicator of price change after applying the tax system. Results indicate that the Idle Land Tax system has no impact regarding land prices and supply in Riyadh city. Real estate prices kept on increasing regardless of the application of the tax system. Such results direct us to look for flaws in the application of the policy.
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Economics
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Middle Eastern studies
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Public policy
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Urban planning
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Kurban, Haydar
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Howard University
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