Strengthening Property Valuation for Taxation in Zambia

Abstract

Effectively, efficiently and transparently assessing property values is foundational to improving property tax collection. Property valuation in Zambia, as in many sub-Saharan countries, relies on a small cadre of highly-trained professional valuers to estimate the market price of each property in a jurisdiction. When implemented well, market- based valuation has significant advantages. But in practice, market- based valuation is often costly and hard to execute effectively. This policy brief is based on the Local Government Revenue Initiative’s (LoGRI) diagnostic assessment of the property tax system in Zambia, along with findings from a simplified approach to valuation piloted in one local council. The brief summarizes Zambia’s current approach to property valuation, along with its challenges. Several reform possibilities are highlighted, including the adoption of automated valuation models (AVMs) to mass assess properties and the further delegation of valuation responsibilities to local levels of government. The challenges – and potential solutions – facing property valuation in Zambia reflect common challenges across much of sub-Saharan Africa. The discussion in this brief is therefore relevant to a wider audience of policymakers interested in reforming their country’s approach to property valuation.