Shared Residential Occupancy and Property Tax Compliance

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See all articles by Wilfred Anim-Odame

Wilfred Anim-Odame

National Development Planning Commission

Precious Brenni

Durham University Business School

Damian Damianov

Durham University Business School

Dennis Philip

Durham University - Department of Economics and Finance

Date Written: November 20, 2020

Abstract

This article examines for the first time the property tax compliance behavior of homeowners who rent out part of their own home to tenants. This increasingly popular occupancy arrangement typically arises due to the financial constraints of homeowners. Currently little is known about the property tax compliance behavior of homeowners in this shared occupancy arrangement, relative to homeowners who fully occupy their properties. Using granular administrative-level data on occupancy characteristics from the Accra Metropolitan Assembly (AMA) in Ghana, we find that owner-and-tenant-occupied dwelling units have a higher probability of being in tax arrears, as compared to owner-occupied units. Their non-compliance is more sensitive to increases in property tax rates and is greater for those located farther away from local public amenities (suburban police stations and hospitals). Overall, our findings provide new insights for policy-makers on the tax compliance of owner-and-tenant-occupancy arrangements in a weak regulatory environment.

Keywords: Residential Occupancy; Home Ownership; Property Tax Compliance; Reciprocity

JEL Classification: D12, H41, R21

Suggested Citation

Anim-Odame, Wilfred and Brenni, Precious and Damianov, Damian and Philip, Dennis, Shared Residential Occupancy and Property Tax Compliance (November 20, 2020). Available at SSRN: https://ssrn.com/abstract=

Wilfred Anim-Odame

National Development Planning Commission ( email )

Precious Brenni

Durham University Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

Damian Damianov

Durham University Business School

Dennis Philip (Contact Author)

Durham University - Department of Economics and Finance ( email )

Department of Economics and Finance
Mill Hill Lane
Durham, DH1 3LB
United Kingdom

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