Determining tax rates: Are property tax rates determined on the basis of political factors, by politicians

British Columbia municipalities may through pursue differential tax treatment of different classes of property as a policy objective. This thesis tests the hypothesis that the choice of tax rates is based primarily on short-term political considerations with local elected officials playing the dominant role in the ultimate decision-making process with municipal staff playing a supporting role in terms of providing technical assistance. As property tax policies have an impact on the economy at the local, provincial and national level it is desirable to understand the issues that are considered in the course of setting tax rates, the role played by participants in the decision-making process, and the decision-making process itself. The literature is reviewed and possible explanatory factors are identified. These are tested by way of a case study of three municipalities in northern British Columbia. The findings of the case study are analyzed and conclusions are offered.