The study not only sheds light on possible distortions in the appraisal system, but also opens the debate on transparency in tax processes.
A study by the ESE Business School showed how the political orientation of mayors could be influencing tax appraisals of non-commercial properties. Researchers Felipe Aldunate, Santiago Truffa and Cristóbal Díaz compared municipalities with highly competitive elections, seeking to uncover possible political biases in appraisals.
The results reveal that, in certain cases, property valuations increase significantly more in municipalities led by mayors of a specific political orientation, compared to other municipalities. This effect is not fully explained by variations in market prices or by the intrinsic characteristics of the properties, which highlights the potential role of municipal administration in the evolution of local taxes.
The study not only sheds light on possible distortions in the appraisal system, but also opens the debate on transparency in tax processes, suggests the need for more rigorous control mechanisms and invites to rethink the technical criteria for municipal appraisal.
The research was funded by the Fondecyt de Iniciación project 11200010, achieving an important academic milestone with the acceptance of the paper entitled: Do political parties matter for property taxes? in the prestigious scientific journal PLOS ONE.