Increasing urban development efficiency through land value capture mechanisms

Abstract

In Hungary, value capture basically relies on recurring forms. Real estate tax and real estate transfer tax are regulated by law. In addition, municipalities can levy local taxes, such as real estate tax for buildings, real estate tax for lands and communal tax. in Hungary the investors have very few obligation to public value. Therefore, in the settlements with an increased population, the local governments are in a difficult position in terms of the basic tasks (e.g. kindergarten, health care). Municipalities are heavily dependent on subsidies and the local business tax. There is a need for a complex value capture method that excludes speculation and expects greater social involvement from investors. Examining foreign examples, the study seeks answers to increase development efficiency.