Shared Residential Occupancy and Property Tax Compliance

43 Pages Posted: 14 Dec 2020 Last revised: 15 Nov 2021

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 12, 2021

Abstract

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

Anim-Odame, Wilfred and Brenni, Precious and Damianov, Damian and Philip, Dennis, Shared Residential Occupancy and Property Tax Compliance (November 12, 2021). Available at SSRN: https://ssrn.com/abstract=3734519 or http://dx.doi.org/10.2139/ssrn.3734519

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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