Shared Residential Occupancy and Property Tax Compliance
43 Pages Posted: 14 Dec 2020 Last revised: 15 Nov 2021
Date Written: November 12, 2021
Little is known about the property tax compliance of popular shared occupancy arrangements, where homeowners rent out part of their home to tenants. Using administrative-level data from Ghana, where homeowners are responsible for tax payments, we find that owner-and-tenant-occupied dwelling units, as compared to owner-occupied units, are more likely to be in tax arrears. Their non-compliance is more sensitive to rate increases. Consistent with reciprocity arguments, non-compliance is greater among shared dwelling units located geographically farther away from public amenities. Our findings highlight the financial fragility of shared occupancy arrangements and provide new insights for policymakers on their tax compliance.
Keywords: Residential Occupancy; Home Ownership; Property Tax Compliance; Reciprocity
JEL Classification: D12, H23, R21
Suggested Citation: Suggested Citation