Working Papers
PDF | Free | 94 pages
Download PDF

Mechanisms for Urban Value Capture Resulting from Public Actions

Leopoldo Moura, Jr.

February 2008, English

In Brazil, there are no appropriate policies to capture value increments resulting from public investment. Decreases in public revenue and the current financial crisis have pushed local governments to find alternatives for new revenue sources. This project draws on a systematization of some American and Colombian experiences with value capture policies and instruments, as well as the experience of implementing public and private partnerships, to evaluate the opportunities and challenges of introducing new value capture instrument in Brazil. The goal is to implement taxation fairness and enable cities to undertake further investments. So, another issue is to discuss the nature of some instruments, to prove that Betterment Levy does not imply double taxation when it is applied together the IPTU (Property Tax).