Bugsy Malone

Bugsy Malone

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Not to be confused with Bugzy Malone.
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Bugsy Malone
Bugsy malone movie poster.jpg
Theatrical release poster by Charles Moll
Directed by Alan Parker
Produced by Alan Marshall
Written by Alan Parker
Starring
  • Scott Baio
  • Jodie Foster
  • Florrie Dugger
  • John Cassisi
  • Martin Lev
Music by Paul Williams
Cinematography
  • Peter Biziou
  • Michael Seresin
Edited by Gerry Hambling
Production
companies
  • Goodtimes Enterprises
  • RSO Records
Distributed by Fox-Rank Distributors (United Kingdom)
Paramount Pictures (United States)
Release date
  • 26 June 1976 (1976-06-26)
Running time
93 minutes[1]
Country United Kingdom
United States[2]
Language
  • English
  • Italian
Budget £575,000[3]-£1 million[4]
Box office $2.8 million[5]

Bugsy Malone is a 1976 American-British musical gangster comedy film, directed by Alan Parker and featuring only child actors. Set in New York City, the film is loosely based on events in New York and Chicago from the early 1920s to 1931 during Prohibition, specifically the exploits of real-life gangsters like Al Capone and Bugs Moran, as dramatized in cinema. Parker lightened the subject matter considerably for the children's market; in the U.S. the film received a G rating.

The film was Parker's feature-length directorial debut, introduced actor Scott Baio, and featured a 13-year old Jodie Foster.

Contents

 [hide]
  • 1 Plot
  • 2 Cast
  • 3 Production
    • 3.1 Casting
    • 3.2 Music
    • 3.3 Filming
  • 4 Release
  • 5 Accolades
  • 6 Home media
  • 7 Soundtrack
  • 8 Legacy
  • 9 Stage adaptation
  • 10 References
  • 11 External links

Plot[edit]

A mobster named Roxy Robinson is "splurged" by members of a gang, using rapid-fire cream-shooting "splurge guns". Once splurged, a kid is "all washed up... finished". Speakeasy boss Fat Sam introduces himself and Bugsy Malone, a boxing promoter with no money ("Bugsy Malone").

At Fat Sam's speakeasy, there is much dancing and singing ("Fat Sam's Grand Slam"). Fat Sam is worried that his rival Dandy Dan will try to take control of the speakeasy. Blousey Brown, an aspiring singer, has come for an audition, but Sam is too distracted to see her. Bugsy meets Blousey when he trips over her luggage. He is smitten and flirts with her. Fat Sam's is raided by Dandy Dan's men, who shoot up the place. Dandy Dan's men continue to attack Fat Sam's empire, eventually taking away rackets and splurging members of Fat Sam's gang. Fat Sam sends all his available men to see if they can track down the guns. They are trapped at a laundry and all are splurged by Dandy Dan's gang.

Bugsy returns to Fat Sam's to arrange a new audition for Blousey. Fat Sam's girlfriend, the chanteuse Tallulah, makes a pass at him. Although Bugsy rejects her flirtation, Tallulah plants a big kiss on Bugsy's forehead when Blousey enters; Blousey is jealous. Fat Sam hires Blousey after her audition, but she refuses to speak to Bugsy ("I'm Feelin' Fine").

Fat Sam hires Bugsy to accompany him to a meeting with Dandy Dan. The meeting is a trap, but Bugsy helps Fat Sam escape. Gratefully, Fat Sam pays him $200. Bugsy and Blousey reconcile and have a romantic outing on a lake; Bugsy promises to take her to Hollywood. When he returns Sam's car to the garage, he is attacked and his money is stolen. Bugsy is saved by Leroy Smith, who assaults the attackers and drives them away. Bugsy realizes that Leroy has the potential to be a great boxer. Bugsy introduces Leroy to Cagey Joe and helps him train ("So You Wanna Be a Boxer?"). Fat Sam again seeks Bugsy's aid after his assistant Knuckles is unintentionally killed. Bugsy resists, but Fat Sam offers $400, enough money to keep his promise to Blousey. Blousey is disappointed when she learns that Bugsy hasn't bought the tickets to California yet ("Ordinary Fool"). Bugsy and Leroy follow Dandy Dan's men to a warehouse, where the guns are being stashed. The two of them can't take the place alone, so Bugsy recruits a large group of down-and-out workers at a soup kitchen ("Down and Out").

They steal the crates of guns and take them to Fat Sam's, arriving just as Dandy Dan's gang arrives. Chaos ensues as a massive splurge gun fight erupts, covering everyone (except Bugsy and Blousey) with cream. Unarmed patrons throw cream pies. The piano player is hit from behind and falls onto the keys, striking a single bass note. The tone silences the room, and the cream-covered crowd performs in a final number ("You Give a Little Love"). They realize they can all be friends, and Bugsy and Blousey leave for Hollywood.

Cast[edit]

  • Scott Baio as Bugsy Malone, an Italian-Irish ex-boxer/boxing scout.
  • Florrie Dugger as Blousey Brown, a sassy young dame interested in Hollywood.
  • Jodie Foster as Tallulah, Fat Sam's gun moll, the speakeasy's star chanteuse and Bugsy's old flame.
  • John Cassisi as Fat Sam Staccetto, crime boss. He is dubbed by the press as "The Alleged Mobster King of the Lower East Side".
  • Martin Lev as Dandy Dan, rival gang boss who steals Fat Sam's territory.
  • Paul Murphy as Leroy Smith, an African-American tramp who discovers he has a talent for boxing
  • Sheridan Earl Russell as Knuckles, Fat Sam's main hoodlum who constantly cracks his knuckles. The only character to actually be killed by the splurge as opposed to "finished".
  • Albin 'Humpty' Jenkins as Fizzy, Caretaker at Fat Sam's Grand Slam, tap dancer
  • Paul Chirelstein as Smolsky, dim-witted police captain
  • Andrew Paul as O'Dreary, dumb policeman
  • Jeffrey Stevens as Louis, one of Fat Sam's hoodlums
  • Donald Waugh as Snake Eyes, one of Fat Sam's hoodlums
  • Peter Holder as Ritzy, one of Fat Sam's hoodlums
  • Michael Kirkby as Angelo, one of Fat Sam's hoodlums
  • Dexter Fletcher as Baby Face, down and out
  • Davidson Knight as Cagey Joe, the boxing gym owner
  • John Williams as Roxy Robinson, Fat Sam's best bodyguard, splurged by Dandy Dan's gang
  • Bonnie Langford as Lena Marelli, showy, pompous theatre performer
  • Mark Curry as Oscar DeVelt, stuck-up theatre producer
  • Jonathan Scott-Taylor as News Reporter
  • Sarah E. Joyce as Smokey Priscilla, showgirl, Tallulah's Troupe
  • Helen Corran as Bangles, showgirl, Tallulah's Troupe
  • Kathy Spaudling as Loretta, showgirl, Tallulah's Troupe
  • Vivienne McKone as Velma, showgirl, Tallulah's Troupe
  • Lynn Aulbaugh as Louella, Dandy Dan's wife and polo partner
  • Michael Jackson as Razamatazz - Fat Sam's personal pianist and performer at the Grand Slam Speakeasy (n.b. not Michael Jackson)
  • Louise English as Ballerina Mel

Production[edit]

Bugsy Malone was Alan Parker's first feature film. Parker was trying to find a film project that was not "parochial" and decided upon an American gangster setting: "I had four young children and we used to go to a cottage in Derbyshire at weekends. On the long, boring car journey up there, I started telling them the story of a gangster called Bugsy Malone. They’d ask me questions and I’d make up answers, based on my memories of watching old movie reruns as a kid." His eldest son suggested children should be cast as the "heroes".[6]

Casting[edit]

The director chose to cast several unknown actors in the film. To find his Fat Sam, Parker visited a Brooklyn classroom, asking for "the naughtiest boy in class". The students were unanimous in selecting John Cassisi, and Parker gave him the role. Florrie Dugger (Blousey) was originally cast in a smaller role; when the actress cast as Blousey suddenly grew taller than Baio, Dugger was promoted. She had been "discovered" at RAF Chicksands, an air force base in Bedfordshire where her American father was stationed.[7] At the time of filming, all of the cast were under 17 years old.[8]

Parker cast Baio after he slammed down the script and stormed out of his audition.[6] Baio later remembered:

I had quit the business, because I didn’t like driving into Manhattan. Well, the long and the short of it is that I wanted to play with my friends after school, but it happened to be raining that day, so I went to the city to meet with Alan Parker. I read it, but I just barely read it. I didn’t even want to be there. He was English, but I didn’t even know what that was. He was just this weird guy with long hair, and I didn’t know what he was. [Laughs.] So I sort of read the script, threw it at him, and walked out the door. That was it: I’d gotten the part before I got home.[9]

Music[edit]

Parker chose Paul Williams to score the film in order to get a more "palatable" modern sound, and simply because he liked him.[10] Williams had scored Brian De Palma's commercial failure Phantom of the Paradise, but had also written huge pop-radio hits (such as "We've Only Just Begun" (lyrics), and "(Just An) Old Fashioned Love Song"). In fact, Williams would soon win an Oscar for his song "Evergreen" from the film A Star Is Born (1976).

Williams felt that "...the challenge for me was to provide songs that reflected the period ... and yet maintained an energy that would hold the young audiences attention." According to Parker, Williams was writing while on tour, recording songs in different cities, and sending the completed tapes to Hollywood. Arriving during the first pre-shoot rehearsals, the songs had to be accepted and used as they were, with voices by Williams, Archie Hahn and others.

Neither the director nor the songwriter was entirely comfortable with the results. Williams later wrote "I'm really proud of the work and the only thing I've ever doubted is the choice of using adult voices. Perhaps I should have given the kids a chance to sing the songs." Parker also commented: "Watching the film after all these years, this is one aspect that I find the most bizarre. Adult voices coming out of these kids' mouths? I had told Paul that I didn't want squeaky kids voices and he interpreted this in his own way. Anyway, as the tapes arrived, scarcely weeks away from filming, we had no choice but to go along with it!"[11]

Filming[edit]

The film was rehearsed and shot in England, largely on Pinewood Studios' "H" stage, with locations in Black Park Country Park (Wexham, Buckinghamshire) and Reading, Berkshire.

The "splurge firearm" proved to be problematic. After initial experiments with cream-filled wax balls proved painful, Parker decided to abandon the idea of filming the firearms directly. Instead, the firearms fired ping-pong balls, and a fast cut to a victim being pelted with "splurge" was used to convey the impression of the rapid-firing firearms.[8]

Baio later said making the film was "awesome":

A kid’s fantasy: You get to dress up as gangster, you get to shoot guns that fire whipped cream, you get to drive cars with pedals that look like real cars, and you get to talk like a grown-up. I mean, you couldn’t ask for a better first big gig. Talk about getting you hooked on a business! It was fantastic.[9]

Release[edit]

Bugsy Malone was released in late 1976 to generally positive reviews. On Rotten Tomatoes, it currently holds a score of 83% based on 18 reviews, with an average rating of 6.6/10.[12] Despite the positive critical reception, Bugsy Malone was not a commercial success in the US, bringing in just over $2.7 million. Paramount gave it a limited release, usually in second-tier theaters in a double-bill with The Bad News Bears, which had already been out for six months and was no longer much of a draw. According to Parker, the film was "quite successful" in the United Kingdom. By 1985, it had earned an estimated profit of £1,854,000.[3]

Accolades[edit]

The film garnered 15 award nominations, including "Best Motion Picture (Musical/Comedy)", "Best Original Score" and "Best Original Song" (for the title track) from the Golden Globes, and an Oscar for "Best Original Song Score" (Paul Williams). The film was in competition for the Palme d'Or at the 1976 Cannes Film Festival.[13] Actress Jodie Foster received two BAFTAs, "Best Supporting Actress" and "Most Promising Newcomer to Leading Film Roles", however, both her nominations were for her previous year's work in Taxi Driver in addition to her work on Bugsy Malone. Alan Parker received the BAFTA Award for Best Original Screenplay, and a nomination for Best Direction. Geoffrey Kirkland won the BAFTA Award for Best Production Design. Additionally, Paul Williams received a nomination for the Anthony Asquith Award for Film Music, and Monica Howe a Best Costume Design nomination. The film itself received a Best Picture nomination.[14]

In 2008, the American Film Institute nominated this film for its Top 10 Gangster Films list.[15]

Home media[edit]

In the early eighties, Bugsy Malone was released on VHS. On 16 April 1996, it was re-released by Paramount on VHS. Although the film has never been commercially released on Region 1 DVD, it has been available through Internet sites as an Asian import supporting Region 1 (US). On 9 September 2008, Arista/SME released a Blu-ray version, encoded for "all regions", as a United Kingdom import. This edition includes a director's commentary as well as other special features, however, as of October 2009, the Blu-ray version was discontinued. A US DVD (Region 1) release was listed around 2003/04 as being available soon, however the film has yet to be released in this format.

Soundtrack[edit]

CD cover

The album was originally released as an LP in 1976. In March 1996, Polydor UK released the soundtrack on CD. It has yet to be released in the US on CD but is available through various outlets as an import.

Performers include Paul Williams, Archie Hahn, Julie McWhirter, and Liberty Williams. The track listing is:

  1. "Bugsy Malone" – Paul Williams
  2. "Fat Sam's Grand Slam" – Paul Williams
  3. "Tomorrow"
  4. "Bad Guys"
  5. "I'm Feeling Fine"
  6. "My Name Is Tallulah" - Louise "Liberty" Williams
  7. "So You Wanna Be a Boxer?"
  8. "Ordinary Fool"
  9. "Down and Out"
  10. "You Give a Little Love" – Paul Williams

A cast recording of the National Youth Music Theatre stage version of Bugsy Malone was released in 1998. Like the stage show, this recording featured two songs originally written by Williams, but not used in the film: "That's Why They Call Him Dandy" and "Show Business". There is also some additional incidental orchestral score, such as an Overture and Exit Music, with music arranged by John Pearson.

Legacy[edit]

In 2003, Bugsy Malone was voted #19 on a list of the 100 greatest musicals, as chosen by viewers of Channel 4 in the UK, placing it higher than The Phantom of the Opera, Cats, and The King and I.[16] Bugsy Malone ranks 353rd on Empire Magazine's 2008 list of the 500 greatest movies of all time.[17]

Bugsy Malone has been adapted into a stage show in two forms.[18][19] A 2003 television documentary called Bugsy Malone: After They Were Famous features a reunion and interviews with Jodie Foster, Scott Baio, John Cassisi and Florrie Dugger. The British actors who played Fat Sam's gang are also reunited at Pinewood Studios.[20] The documentary reported that Dugger, who (unlike her co-stars) had never acted again, had chosen to pursue a career in the United States Air Force Medical Service.[21][7]

In 2010, UK band Silvery included a cover of "You Give a Little Love" on their second album 'Railway Architecture', and Olly Murs, runner up in the 2009 UK series of The X Factor, sampled "So You Wanna Be a Boxer" in his song "Hold On" that can be found on his debut album.

In 2011, the film was the most screened film in secondary schools in the United Kingdom.[22]

In 2017, the song "You Give A Little Love" was sung by a children's chorus at the end of a Netflix "Black Mirror" episode (Season 4 episode 3 "Crocodile").

Stage adaptation[edit]

Parker wrote the book for a stage adaptation of Bugsy Malone, using Williams' music. This premiered in the West End in 1983 at Her Majesty's Theatre and ran for 300 performances. It was directed by Michael Dolenz and the cast featured Catherine Zeta-Jones as Tallulah. In 1997, the National Youth Music Theatre mounted an all-youth version. It was revived at the Queen's Theatre in 1997, starring Sheridan Smith and Jamie Bell.[23] Another revival played in 2015 and again in 2016 at the Lyric Hammersmith theatre,[24] where it was nominated for the Olivier Award for best musical revival.[25]

References[edit]

  1. Jump up ^ "BUGSY MALONE (U)". British Board of Film Classification. 1976-04-13. Retrieved 2013-05-04.
  2. Jump up ^ "Detail view of Movies Page". www.afi.com.
  3. ^ Jump up to: a b Alexander Walker, National Heroes: British Cinema in the Seventies and Eighties, Harrap, 1985 p 86
  4. Jump up ^ Kelly, Matthew (2003-12-31). "Bugsy Malone". After They Were Famous. Season 3. Episode 18. ITV.
  5. Jump up ^ "Bugsy Malone (1976) - Box office / business". Internet Movie Database. Amazon.com. Retrieved 2011-12-02.
  6. ^ Jump up to: a b Parker, Alan; Baio, Scott; Dickson, Andrew (13 October 2015). "How we made Bugsy Malone". The Guardian. Retrieved 13 October 2015.
  7. ^ Jump up to: a b Clark, Nick (12 April 2015). "Florrie Dugger: The downside of growing up with Bugsy Malone". The Independent. Archived from the original on 14 August 2016.
  8. ^ Jump up to: a b Bugsy Malone – Trivia IMDB. Retrieved 3 June 2010.
  9. ^ Jump up to: a b Will Harris, "Scott Baio talks Chachi, Bob Loblaw, and Howard Cosell", AV Club 3 April 2014 accessed 7 April 2014
  10. Jump up ^ Bugsy Malone DVD Special Edition PaulWilliamsCoUK.Plus.com David Chamberlayne. Retrieved 3 June 2010.
  11. Jump up ^ Paul Williams – Bugsy Malone Soundtrack PaulWilliamsCoUK.plus.com; David Chamberlayne. Retrieved 3 June 2010.
  12. Jump up ^ "Bugsy Malone (1976)". Rotten Tomatoes. Flixster. Retrieved 9 January 2016.
  13. Jump up ^ "Festival de Cannes: Bugsy Malone". festival-cannes.com. Retrieved 6 May 2009.
  14. Jump up ^ Bugsy Malone – Awards IMDB.
  15. Jump up ^ "AFI's 10 Top 10 Nominees" (PDF). Archived from the original on 16 July 2011. Retrieved 2016-08-19. CS1 maint: BOT: original-url status unknown (link)
  16. Jump up ^ "100 Greatest Musicals – Broadcast Christmas 2003, Channel 4 (UK). Presented by Denise Van Outen". thecustard.tv. The Custard. 2003. Archived from the original on 16 October 2007. Retrieved 18 June 2008.
  17. Jump up ^ The 500 Greatest Movies of All Time – #400–301 empireonline.com; Empire Online. Retrieved 3 June 2010.
  18. Jump up ^ "Bugsy Malone". Music Theater International. Retrieved 18 June 2008.
  19. Jump up ^ "Bugsy Malone JR". Music Theater International. Retrieved 28 November 2012.
  20. Jump up ^ ""After They Were Famous", Bugsy Malone. (2003)" on IMDb
  21. Jump up ^ Parker, Alan. "Bugsy Malone: The Making of the Film". Alan Parker - Director, Writer, Producer - Official Website. Retrieved 7 June 2017.
  22. Jump up ^ "Top movies for schools revealed". BBC News. 13 December 2011. Retrieved 2012-01-04.
  23. Jump up ^ "Bugsy Malone: Show History", MTIshows.com, accessed July 16, 2016
  24. Jump up ^ Shenton, Mark. "Bugsy Malone, review of Lyric Hammersmith's Olivier nominated revival", LondonTheatre.co, June 27, 2016
  25. Jump up ^ "Olivier awards 2016: complete list of nominations", The Guardian, February 29, 2016

External links[edit]

  • Bugsy Malone on IMDb
  • Bugsy Malone at the TCM Movie Database
  • Bugsy Malone at Rotten Tomatoes
  • Bugsy Malone show site at Music Theatre International
  • Busy Malone JR. show site at Music Theatre International
  • The Guide to Musical Theatre Bugsy Malone – Synopsis, etc
[hide]
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Films directed by Alan Parker
  • The Evacuees (1975, Play for Today)
  • Bugsy Malone (1976)
  • Midnight Express (1978)
  • Fame (1980)
  • Shoot the Moon (1982)
  • Pink Floyd – The Wall (1982)
  • Birdy (1984)
  • Angel Heart (1987)
  • Mississippi Burning (1988)
  • Come See the Paradise (1990)
  • The Commitments (1991)
  • The Road to Wellville (1994)
  • Evita (1996)
  • Angela's Ashes (1999)
  • The Life of David Gale (2003)
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  • BNF: cb164596801 (data)
  • GND: 7659633-3
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Retrieved from "https://en.wikipedia.org/w/index.php?title=Bugsy_Malone&oldid=843603375"
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Property tax

Property tax

From Wikipedia, the free encyclopedia
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For other uses, see Wealth tax.

Taxation
10 Percent Legacy and Succession Duty Impressed Duty Stamp.jpg
An aspect of fiscal policy
Policies[show]
  • Government revenue
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Economics[show]
  • Price effect
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  • Laffer curve
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Collection[show]
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Noncompliance[show]
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Distribution[show]
  • Tax rate
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Types[show]
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  • Wealth
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A property tax or millage rate[1] is an ad valorem tax on the value of a property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region or a municipality. Multiple jurisdictions may tax the same property. This tax can be contrasted to a rent tax which is based on rental income or imputed rent, and a land value tax, which is a levy on the value of land, excluding the value of buildings and other improvements.

Under a property-tax system, the government requires or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value.

Contents

  • 1 Types
  • 2 Jurisdictions
    • 2.1 Australia
    • 2.2 Brazil
    • 2.3 Canada
      • 2.3.1 Calculating Individual Property Taxes
      • 2.3.2 Land Transfer Tax
        • 2.3.2.1 British Columbia
          • 2.3.2.1.1 First time home buyers program
          • 2.3.2.1.2 New home exemption
    • 2.4 Chile
    • 2.5 Egypt
    • 2.6 Greece
    • 2.7 Hong Kong
      • 2.7.1 Net assessable value
    • 2.8 India
    • 2.9 Ireland
    • 2.10 Jamaica
    • 2.11 Lithuania
    • 2.12 Luxembourg
    • 2.13 Netherlands
    • 2.14 United Kingdom
    • 2.15 United States
  • 3 Places without property tax
    • 3.1 Africa
    • 3.2 Europe
    • 3.3 Oceania
    • 3.4 Asia
    • 3.5 United States
  • 4 See also
  • 5 References
  • 6 Further reading

Types[edit]

The four broad types of property taxes are land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects) and intangible property. Real property (also called real estate or realty) is the combination of land and improvements.

Forms of property tax vary across jurisdictions. Real property is often taxed based on its class. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of property classes are residential, commercial, industrial and vacant real property.[2] In Israel, for example, property tax rates are double for vacant apartments versus occupied apartments.[3]

A special assessment tax is sometimes confused with property tax. These are two distinct forms of taxation: one (ad valorem tax) relies upon the fair market value of the property. The other (special assessment) relies upon a special enhancement called a "benefit" for its justification.

The property tax rate is typically given as a percentage. It may be expressed as a per mil (amount of tax per thousand currency units of property value), which is also known as a millage rate or mill (one-thousandth of a currency unit). To calculate the property tax, the authority multiplies the assessed value by the mill rate and then divides by 1,000. For example, a property with an assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year.[4]

Jurisdictions[edit]

Property classes, tax rates, assessment rules and valuations vary by jurisdiction.

Australia[edit]

Australian property is taxed at both the state and council (local municipal) level. Taxes are payable by property owners - there is no property tax charged to renters.

A state tax commonly called "stamp duty" is assessed when is property is purchased or transferred. It is typically around 5% of the purchase price, payable by the purchaser. Other transfer charges may also apply, including special fees for investors from overseas.[5]

"Land tax" - also a state tax - is assessed every year on a property's value. Most Australians do not pay land tax, as most states provide a land tax exemption for the primary home or residence. Depending on the state, surcharge tax rates can apply to foreign owners.[6]

"Council rates" is a municipal tax levied by local government. This is assessed each year on a property's value. Council rates are around $1300 per annum for an average Australian household.[7]

Brazil[edit]

Brazil is a Federation Republic, and its federated entities (internal States and Municipalities), as well as the Federal government, levy property taxes. They are all declared in the Federal Constitution.

These are the current property taxes:

  • Tax on Rural Territorial Property – federal: levied upon real state property on rural areas;
  • Tax on Urban Territorial Property – municipal: levied upon real state property on urban areas;
  • Tax on Motorized Vehicles Property – state: levied upon the property of cars, trucks, motorcycles, and the likes;
  • Tax on Big Fortunes – federal: it is declared on the Federal Constitution, but there is still no regulation defining its incidence.

Canada[edit]

Many provinces levy property tax on real estate based upon land use and value. This is the major source of revenue for most municipal governments. While property tax levels vary across municipalities, a common property assessment or valuation criteria is laid out in provincial legislation. The trend is to use a market value standard for valuation purposes with varying revaluation cycles. Multiple provinces established an annual reassessment cycle where market activity warrants, while others have longer periods between valuation periods.

Calculating Individual Property Taxes[edit]

In Ontario, for most properties (e.g., residential, farms), property taxes can be calculated by multiplying the phased-in assessment indicated on the Property Assessment Notice by the tax rate.

The municipal tax rate x phased-in assessment for the particular taxation year = municipal portion of tax.

The county/regional tax rate x phased-in assessment for the particular taxation year = county/regional portion of tax.

The education tax rate x phased-in assessment for the particular taxation year = education portion of tax.

The municipal portion of tax + county/regional portion of tax + education portion of tax = Total Property Tax.

In some cases (e.g., commercial, industrial, multi-residential properties), the Province or municipality may implement measures that affect the actual taxes paid on a property.

Land Transfer Tax[edit]

Land transfer tax is a provincial tax levied when purchasing a home or land in Canada. All provinces have a land transfer tax, except Alberta and Saskatchewan. In most provinces the tax is calculated as a percentage of the purchase price. In Toronto there is an additional municipal tax.

Ontario, British Columbia, Prince Edward Island and the City of Toronto offer land transfer tax rebates for first-time homebuyers. [8][9]

British Columbia[edit]

In British Columbia the property transfer tax is equal to one percent tax on the first $200,000 of the purchase price, two percent on the remaining amount up to $2 million and three percent on the rest.[10] An additional 15% tax that applies only to non-resident foreign home buyers in Greater Vancouver started on August 2, 2016. The definition of foreign buyer includes international students and temporary foreign workers. Anti-avoidance measures include fines of $100,000 for individuals and $200,000 for corporations.[11]

First time home buyers program[edit]

The First Time Home Buyers Program is a program by the BC government that offers qualifying first-time homebuyers a reduction or elimination of the property transfer tax. It can be used in conjunction with the B.C. Home Owner Mortgage and Equity Partnership.[12]

The First Time Home Buyers Tax Credit is also available in Ontario, which offers First Time Home Buyers a 750 dollar tax Rebate. In 2017 the Ontario Government also released the Land Transfer Tax Rebate, which allowed for up to 4,000 dollar rebate - ensuring that first time home buyers of homes valued under 368,000 dollars would not pay land transfer tax.[13]

New home exemption[edit]

The Newly Built Home Exemption is a program that reduces or eliminates the property transfer tax on new homes. The amount is limited to $13,000 for qualifying individuals who must be either a Canadian citizen or a permanent resident. The property purchased must be located in British Columbia, have a fair market value of $750,000, be smaller than 1.25 acres and be used as a principle residence. It can be used in conjunction with the B.C. Home Owner Mortgage and Equity Partnership.[14]

Chile[edit]

The land property tax, called "territorial tax" or "contribution", is an annual amount paid quarterly by the property's owner. It is determined as a percentage of the property's "fiscal value", which is calculated by the Internal Revenue Service, based on the property's land and built area, construction materials, age and use. The fiscal value, which is usually much lower than the market value, may be disputed by the owner. The annual levy varies between 1 and 2% of this value, depending on the property's use (residential, agricultural or commercial). Residential properties valued below US$40K (as of 2013) are not taxed; those above that threshold are taxed only on the amount exceeding US$40K.[15] Revenues go to the municipality administering the property's commune.[16] All municipalities contribute a share of the revenue to a "common municipal fund" that is then redistributed back to municipalities according to a their needs (commune's poverty rate, etc.).[17][18] Additionally, municipalities charge a quarterly trash collection tax, which is often paid together with the territorial tax (if applicable).

Egypt[edit]

The law imposes a tax on each property. Public buildings are excluded (such as government buildings), as are religious buildings (mosques and churches). Families owning private properties worth up to LE 2 million ($290,000) are exempt. commercial stores with an annual rent value over LE 1,200 are not exempt.[19]

Greece[edit]

Greece has a Municipal and a Government property tax. The municipal property tax (ΤΑΠ/ΔΤ/ΔΦ) is included in electricity bills and incorporates, among others, charges for street cleaning and lighting. The Government property tax (ENFIA) is a combination of the individual asset's tax based upon floor-area and a progressive real-estate wealth tax per individual which is based on the estimated net-worth of all properties and can reach 2%.

Hong Kong[edit]

In Hong Kong, the "property tax" is not an ad valorem tax; it is actually an income tax.

According to HK Inland Revenue Ordinance IRO s5B, all property owners are not be subject to this tax unless they received a consideration, like rental income for the year of assessment. The property tax is computed on the net assessable value at the standard rate. The period of assessment is from 1 April to 31 March.

Net assessable value[edit]

The formula is:

Net assessable value = 80% of Assessable value.
HK property tax payable = Net assessment value X Property tax standard rate
Assessable value = Rental income + Premium + (Rental bad debt recovered — Irrecoverable rent) – Rates paid by owner.

India[edit]

Property tax or 'house tax' is a local tax on buildings, along with appurtenant land. It is and imposed on the Possessor (not the custodian of property as per 1978, 44th amendment of constitution). It resembles the US-type wealth tax and differs from the excise-type UK rate. The tax power is vested in the states and is delegated to local bodies, specifying the valuation method, rate band, and collection procedures. The tax base is the annual rental value (ARV) or area-based rating. Owner-occupied and other properties not producing rent are assessed on cost and then converted into ARV by applying a percentage of cost, usually four percent. Vacant land is generally exempt. Central government properties are exempt. Instead a 'service charge' is permissible under executive order. Properties of foreign missions also enjoy tax exemption without requiring reciprocity. The tax is usually accompanied by service taxes, e.g., water tax, drainage tax, conservancy (sanitation) tax, lighting tax, all using the same tax base. The rate structure is flat on rural (panchayat) properties, but in the urban (municipal) areas it is mildly progressive with about 80% of assessments falling in the first two brackets.[20]

Ireland[edit]

Main article: Local Property Tax (Ireland)

A Local Property Tax came into effect in Republic of Ireland on 1 July 2013, and is collected by the Revenue Commissioners. The tax is on residential properties. The property owner is liable (though in the case of leases over twenty years, the tenant is liable). The revenue funds the provision of services by local authorities. Such services currently include public parks, libraries, open spaces and leisure amenities, planning and development, fire and emergency services, maintenance and street cleaning and lighting.

The tax is based upon market value, taxed via a system of market bands. The initial national central rate of the tax is 0.18% of a property's value up to €1 million. Properties valued over €1 million are assessed 0.25% on the excess. From 1 January 2015, local authorities are able to vary LPT rates -/+ 15% of the national central rate.

In the case of properties valued over €1 million, no banding applies – 0.18% is charged on the first €1 million (€1,800) and 0.25% on the balance. The government estimates that 85% to 90% of all properties fall within the first five taxation bands.[21][22]

Jamaica[edit]

This tax is paid annually and is based on a percentage of the unimproved value of a property.

Lithuania[edit]

The tax period for a property tax is a calendar year. Property tax rate ranging from 0.3% to 1% the tax value of real estate is determined by the municipality.

Since January 1st 2015 if the persons property value is higher than 220 000 euros, 0.5 per cent of property tax is applied for exceeding amount.

Luxembourg[edit]

Property tax in Luxembourg is calculated on the basis of the property's "unitary value" determined by tax authorities and levied by the communes. The tax is calculated as property unitary value * assessment rate * communal rate. The assessment rate is determined by the legislator and generally ranges from 0.7% to 1%. The communal rate is set by the communal authority and varies from 120% to 900% depending on the municipality.

Luxembourg has minimal property taxes compared to its neighbours in Benelux or in the European Union. It amounts to more or less €150 for a €500 000 apartment in Luxembourg City.[23][24]

Netherlands[edit]

Property tax (Dutch: Onroerendezaakbelasting (OZB)) is levied on property on a municipal basis. Only the owners of residential property and people who rent/own commercial space are taxed. People who rent a home do not pay property tax. Municipalities combine their property taxes with a tax for garbage collection and for the sewer system. Owners and users of property and land also pay taxes based on the value of property to the water boards for flood protection and water and wastewater treatment ("waterschapsbelasting"). A percentage of the value of a house ("huurwaardeforfait") is added to the income of the owner, so the owner of a house pays more income tax. All property-related taxes are based on the value of the house estimated by the municipality.

United Kingdom[edit]

See also: Business rates in England and Wales

In the UK the ownership of residential property or land is not taxed, a situation almost unique in the OECD.[25][26][27] Instead, the Council Tax is usually paid by the resident of a property, and only in the case of unoccupied property does the owner become liable to pay it (although owners can often obtain a discount or an exemption for empty properties).[28]

Her Majesty's Revenue and Customs (HMRC) guidelines state:

"Council Tax is a tax on property. In principle it may be an allowable deduction in those instances where other property-based expenses are deductible."[29]

The Valuation Tribunal Service states that:

"The tax is a mix of a property tax and a personal tax. Generally, where two or more persons reside in a dwelling the full tax is payable. If one person resides in the dwelling then 75% is payable. An empty dwelling attracts only a 50% charge unless the billing authority has made a determination otherwise."[30]

The Council Tax depends on the value of the property, but is not calculated as a simple percentage. Instead, the property is allocated to a Council Tax band, (9 in England and 8 in Scotland and Wales). Valuation is carried out by the Valuation Office Agency under the auspices of Her Majesty's Revenue and Customs (HMRC).[31][32]

United States[edit]

Main article: Property tax in the United States

In the United States, property tax on real estate is usually levied by local government, at the municipal or county level. Rates vary across the states, between about 0% and 4% of the home value.[33] The assessment is made up of two components—the improvement or building value and the land or site value. The property tax is the main tax supporting local education, police/fire protection, local governments, some free medical services and most of other local infrastructure. Many state and local jurisdictions add personal property taxes. (See exceptions below.)

Places without property tax[edit]

Africa[edit]

  •  Kenya[34]
  •  Mauritania[35]
  •  Namibia[36]

Europe[edit]

  •  Faroe Islands[37]
  •  Malta[38]

Oceania[edit]

  •  Palau[39]
  •  Norfolk Island[40]
  •  Cook Islands[41]

Asia[edit]

  •  China[citation needed]

United States[edit]

In Alaska, "...only a small portion of the land mass is subject to a property tax. ...only 24 municipalities in Alaska (either cities or boroughs) levy a property tax."[42] There is no tax on the private land in American Samoa, the Territory of Palmyra Island or Kingman Reef in the Pacific Ocean insular areas.[43]

See also[edit]

  • Allodial title
  • Land value tax
  • Udal title

References[edit]

  1. Jump up ^ "Millage Rate" at Investopedia.
  2. Jump up ^ "Real Property Tax Rates – otr".
  3. Jump up ^ Bousso, Nimrod (20 May 2013). "Interior Minister Approves Doubling Property Taxes on Vacant Israeli Apartments" – via Haaretz.
  4. Jump up ^ "Connecticut Office of Policy Management: Mill Rates". Retrieved 2010-10-04.
  5. Jump up ^ Office, Australian Taxation. "State and territory taxes". www.ato.gov.au. Retrieved 2018-01-08.
  6. Jump up ^ content_publisher (2016-11-23). "Land tax surcharge". www.revenue.nsw.gov.au. Retrieved 2018-01-08.
  7. Jump up ^ Australia, Local Government Association of South. "Council Rates". Retrieved 2018-01-08.
  8. Jump up ^ "Land Transfer Tax Calculator Canada – Rates & Rebates".
  9. Jump up ^ "Land Transfer Tax".
  10. Jump up ^ "B.C. to hit foreign buyers of Metro Vancouver homes with 15% property tax".
  11. Jump up ^ "Ontario considers following B.C. on taxing foreign real estate investors".
  12. Jump up ^ "First Time Home Buyers' Program – Housing Action".
  13. Jump up ^ https://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html
  14. Jump up ^ "Newly Built Home Exemption – Housing Action".
  15. Jump up ^ "DFL-1 16-DIC-1998 MINISTERIO DE HACIENDA – Ley Chile – Biblioteca del Congreso Nacional".
  16. Jump up ^ "Preguntas Frecuentes de Bienes Raíces".
  17. Jump up ^ [1][dead link]
  18. Jump up ^ REGLAMENTO PARA LA APLICACION DEL ARTICULO 38 DEL DECRETO LEY N° 3.063, DE 1979, MODIFICADO POR EL ARTICULO 1° DE LA LEY N° 20.237
  19. Jump up ^ "Egypt's amended property tax law to take effect in July: Finance ministry – Economy – Business – Ahram Online". english.ahram.org.eg. Retrieved 2017-01-27.
  20. Jump up ^ Datta, Abhijit. (1992). Local Government Finances: Trends, Issues and Reforms, in Bagchi, Amaresh. et al. (Eds.), State Finances in India, New Delhi: Vikas Publishing House for the NIPFP...
  21. Jump up ^ Revenue Commissioners (Ireland) – Local Property Tax (LPT), Frequently Asked Questions (5 December 2012)
  22. Jump up ^ Budget 2013 (Ireland) – ANNEX B – Local Property Tax (LPT) (5 December 2013)
  23. Jump up ^ "Property Tax | Le Gouvernement du Grand Duché de Luxembourg". www.guichet.public.lu. Retrieved 2016-02-22.
  24. Jump up ^ "Luxembourg Tax Smart Card". www.nexvia.lu/#!tax-smart-card/glc4v. Retrieved 2016-02-22.
  25. Jump up ^ editor, Patrick Wintour Political (7 December 2015). "Labour has 'moral mission' to tackle inequality, says Tristram Hunt" – via The Guardian.
  26. Jump up ^ "Opinion".
  27. Jump up ^ "The Real Hope for Home Ownership".
  28. Jump up ^ "Council Tax – GOV.UK".
  29. Jump up ^ "BIM46840 – Specific deductions: rent and rates: Council Tax". www.hmrc.gov.uk. Retrieved 2015-09-18.
  30. Jump up ^ "Council Tax Guidelines". Archived from the original on 3 October 2015.
  31. Jump up ^ "Council Tax bands and rates | Westminster City Council". www.westminster.gov.uk. Retrieved 2015-09-18.
  32. Jump up ^ "Council tax bands and rates – guide | Lambeth Council". www.lambeth.gov.uk. Retrieved 2015-09-18.
  33. Jump up ^ "The Tax Foundation — Property Taxes on Owner-Occupied Housing by State, 2004–2009". 2009. Retrieved 2010-10-04.
  34. Jump up ^ Deloitte Kenya Highlights 2013 pdf
  35. Jump up ^ Deloitte Mauritania Highlights 2013 pdf
  36. Jump up ^ Deloitte Namibia Highlights 2013 pdf
  37. Jump up ^ eTax, Nordisk. "Faroe Islands".
  38. Jump up ^ "British Expat Forum • View forum – Malta".
  39. Jump up ^ "Palau (US department of State)".
  40. Jump up ^ "A hidden paradise with no income tax or property tax… – Sovereign Man".
  41. Jump up ^ "Why Invest in the Cook Islands – is it that good – really?".
  42. Jump up ^ "Alaska Tax Facts". Alaska Department of Commerce, Community and Economic Development: Office of the State Assessor. Retrieved May 9, 2017.
  43. Jump up ^ "GAO/OGC-98-5 – U.S. Insular Areas: Application of the U.S. Constitution". U.S. Government Printing Office. November 7, 1997. Retrieved May 9, 2017.

Further reading[edit]

  • Slack, E., & Bird, R. M. (2014). The Political Economy of Property Tax Reform, OECD Working Papers on Fiscal Federalism 18, OECD Publishing.
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2017–2018 eruptions of Mount Agung

2017–2018 eruptions of Mount Agung

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Ambox current red.svg
This article needs to be updated. Please update this article to reflect recent events or newly available information. (April 2018)
2017–2018 eruptions of Mount Agung
Mount Agung, November 2017 eruption - 27 Nov 2017 02.jpg
Mount Agung on 27 November
Volcano Mount Agung
Date 21 November 2017 (2017-11-21) – ongoing
(11 months and 2 days)[1]
Type Vulcanian/Sub-plinian
Location Bali, Indonesia
8°20′35″S 115°30′25″E / 8.34306°S 115.50694°E / -8.34306; 115.50694Coordinates: 8°20′35″S 115°30′25″E / 8.34306°S 115.50694°E / -8.34306; 115.50694
VEI 2 (as of 2 Dec 2017)[2]
Mount Agung is located in Bali
Mount Agung
Mount Agung
Location of Mount Agung, Bali

Mount Agung, a volcano on the island of Bali in Indonesia, erupted five times in late November 2017, causing thousands to evacuate, disrupting air travel and causing environmental damage. As of 27 November 2017[update], the alert level was at its highest and evacuation orders were in place.

Tectonic earthquakes from the volcano had been detected since early August, and volcanic activity intensified for several weeks before decreasing significantly in late October. A second, more violent period of major activity began in late November.

Contents

  • 1 Background
    • 1.1 1843 eruption
    • 1.2 1963 eruption
  • 2 Major activity in 2017
    • 2.1 August
    • 2.2 September
    • 2.3 October
    • 2.4 November
      • 2.4.1 21 November
      • 2.4.2 25 November
      • 2.4.3 26 November
      • 2.4.4 27 November
      • 2.4.5 29 November
  • 3 Activity in 2018
    • 3.1 January
    • 3.2 June
    • 3.3 July
  • 4 Impact
  • 5 References

Background[edit]

1843 eruption[edit]

Agung erupted in 1843[3] as reported by Heinrich Zollinger:

After having been dormant for a long time, this year the mountain began to be alive again. In the first days of the activity earthquake shocks were felt after which followed the emission of ash, sand and stones.[4]

1963 eruption[edit]

Mount Agung's 1963 eruption was among the most catastrophic volcanic events in Indonesian history. After initial explosions in the crater on 18 February of that year, lava began flowing down the mountain on 24 February, eventually traveling 7 km over the next three weeks. On 17 March, a highly explosive eruption occurred, reaching a VEI (Volcanic Explosivity Index) of 5 and sending lethal pyroclastic flows at high speeds down the mountain's slopes, killing at least 1,500 people.[5] Heavy rainfall mixed with ash from the eruption in the following days caused extensive lahars which killed about 200 more people. A smaller eruption occurred on 16 May, sending pyroclastic flows down the mountain once more, killing about 200 more people.[5][6] By the time the eruptions ceased in early 1964, they had claimed about 1,900 lives, marking the event as the 8th deadliest volcanic eruption of the 20th century.

Since 1963, the population of Bali has nearly doubled.[7] Mount Agung is therefore considered highly dangerous by Indonesian authorities. This concern was the primary reason behind their decision to evacuate more than 100,000 people in response to the surge in local tectonic activity in the latter half of 2017.[6]

Major activity in 2017[edit]

August[edit]

Volcanic earthquakes were observed from 10 August 2017[8] and the intensity increased in the following weeks.

September[edit]

In September 2017, an increase of rumbling and seismic activity around the volcano made people raise the alert to the highest level and about 122,500 people were evacuated from their homes around the volcano.[9] The Indonesian National Disaster Management Authority declared a 12-kilometer exclusion zone around the volcano on 24 September.[10] A plume was observed on 13 September.[8]

Evacuees gathered in sports halls and other community buildings around Klungkung, Karangasem, Buleleng, and other areas.[11] The monitoring station is in Tembuku, Rendang, Karangasem Regency, where intensity and frequency of tremors were monitored for signs of the imminent large eruption.[12]

The area experienced 844 volcanic earthquakes on 25 September, and 300 to 400 earthquakes by midday on 26 September. Seismologists have been alarmed at the force and frequency of the incidents as it has taken much less for similar volcanoes to erupt.[13][14]

October[edit]

In late October 2017, the activity of the volcano decreased significantly, leading to lowering of the alert status on 29 October.[15]

The alert level remained at 3 (out of 4) until the start of the second major activity period, and plumes were observed during this time.[16][17]

November[edit]

21 November[edit]

There was a small phreatic eruption reported at 09:05 (UTC), with the ash cloud top reaching 3,842 metres (12,605 ft) above sea level.[18] Thousands of people immediately fled the area,[19] and over 29,000 temporary refugees were reported to be housed in over 270 locations nearby.[20]

25 November[edit]

A magmatic eruption began early on Saturday morning.[21] The resulting eruption plume was reported to rise about 1.5–4 km above the summit crater, drifting towards the south and dusting the surroundings with a thin layer of dark ash, leading some airlines to cancel flights bound for Australia and New Zealand. An orange glow was later observed around the crater at night, confirming that fresh magma had indeed reached the surface.[22][23]

26 November[edit]

At 23:37 (UTC), another eruption occurred.[21] Ngurah Rai International Airport was closed next day,[24] leaving many tourists stranded.[25] More than 100,000 people in a 10-kilometre (6.2 mi) radius of the volcano were ordered to evacuate.[26]

27 November[edit]

Ash plume from Mount Agung on 27 November

Sunday 26 November's eruption continued at a constant rate,[27] and lahars were reported in the Selat district south of the volcano.[25] The Australian Government's Bureau of Meteorology reported that the top of the eruption column had reached an altitude of 9,144 m (5.7 miles).[28] Ash continued to spread in a southeasterly direction, and estimates by the Pacific Disaster Center predicted that the resulting atmospheric ash exposure will affect up to 5.6 million people within the densely populated region surrounding the volcano.[27]

29 November[edit]

NASA MODIS aerial view of ash from Terra satellite.

Reductions in eruption intensity and wind dispersal of the ash cloud led authorities to reopen Ngurah Rai International Airport at 07:00 (UTC).[29][30] Authorities also warned that the eruption volume could increase again at any time, potentially shutting down air traffic once more.[30]

Activity in 2018[edit]

January[edit]

The volcano erupted once again on January 11, sending plumes of smoke and ash, while Indonesia's Bali international airport was declared safe, operating normally.[31] The eruption column was reported to rise 2.5 km above the mountain.

June[edit]

Agung erupted on June 12, sending plumes of smoke and ash some 2,000 meters above the volcano's summit.[32] No flights were affected from the event.

On June 28, water vapour and volcanic ash emission were detected from Mount Agung up to two kilometres into the air. The Ngurah Rai Airport was closed due to the event. [33][34]

July[edit]

Agung erupted again July 3 due to a minor strombolian explosion. 700 people living near the crater were evacuated. No flights were affected.[35]

Impact[edit]

The 2017 eruption caused some 40,000 people to be evacuated from 22 villages around Mount Agung. It also caused surrounding airports to be closed. Lombok International Airport, on the neighboring island of Lombok, closed on 26 November, but was reopened the next morning,[36] only to be closed again on 30 November.[37] Lombok's airport reopened on 1 December. Ngurah Rai International Airport, located at the southern tip of the island and southwest of the volcano, closed on 27 November.[38] More than 400 flights were canceled and about 59,000 passengers remained grounded.[39] The airport was reopened on 29 November. This eruption also caused a decline in tourism on Bali by about 30%.

References[edit]

  1. Jump up ^ "Agung". Global Volcanism Program. Smithsonian Institution. Retrieved 2018-01-23.
  2. Jump up ^ MT AGUNG ACTIVITY REPORT "Current indicators point to a relatively small eruption of VEI 2 (volcanic eruptive index 2)"
  3. Jump up ^ Anwari Dilmy. «Pioneer Plants Found One Year After the 1963 Eruption of Agung in Bali» / Pacific Science, Volume 19, Number 4, 1965, p. 498-501
  4. Jump up ^ Heinrich Zollinger. Eein uirsrapje naar her eiland Bali / Tijdschr. Neer. Ind. 74:43, 1845.
  5. ^ Jump up to: a b Zen, M. T.; Hadikusumo, Djajadi (December 1964). "Preliminary report on the 1963 eruption of Mt.Agung in Bali (Indonesia)". Bulletin of Volcanology. 27: 269–299 – via Springer.
  6. ^ Jump up to: a b "Mount Agung: Bali volcano alert raised to highest level". BBC News. 27 November 2017. Retrieved 28 November 2017.
  7. Jump up ^ "Population of Indonesia by Province 1971, 1980, 1990, 1995, 2000 and 2010". Badan Pusat Statistik (in Indonesian). Archived from the original on 3 December 2017. Retrieved 1 December 2017.
  8. ^ Jump up to: a b Global Volcanism Program. Sennert, Sally Kuhn, ed. "Report on Agung (Indonesia)". Weekly Volcanic Activity Report, 13–19 September 2017. Smithsonian Institution and US Geological Survey. Retrieved 28 November 2017.
  9. Jump up ^ "Indonesian official: More than 120,000 flee Bali volcano". Fox News. 28 September 2017. Retrieved 28 September 2017.
  10. Jump up ^ "Thousands evacuated as Bali volcano sparks fear". The Australian. 24 September 2017.
  11. Jump up ^ "Mount Agung: facts about Bali's imminent volcano eruption". UbudHood. 23 September 2017. Retrieved 1 November 2017.
  12. Jump up ^ "How do experts know Mount Agung is about to erupt?". ABC News Australia. 25 September 2017. Retrieved 1 November 2017.
  13. Jump up ^ Once tremors detected, Bali volcano can erupt within hours: Volcanologist CNA, 3 October 2017
  14. Jump up ^ Lamb, Kate (26 September 2017). "Bali volcano eruption could be hours away after unprecedented seismic activity". The Guardian. ISSN 0261-3077. Retrieved 26 September 2017.
  15. Jump up ^ Topsfield, Jewel; Rosa, Amilia (30 October 2017). "Mount Agung volcano alert in Bali downgraded". The Sydney Morning Herald. Retrieved 27 November 2017.
  16. Jump up ^ Global Volcanism Program. Sennert, Sally Kuhn, ed. "Report on Agung (Indonesia)". Weekly Volcanic Activity Report, 1–7 November 2017. Smithsonian Institution and US Geological Survey. Retrieved 28 November 2017.
  17. Jump up ^ Global Volcanism Program. Sennert, Sally Kuhn, ed. "Report on Agung (Indonesia)". Weekly Volcanic Activity Report, 8–14 November 2017. Smithsonian Institution and US Geological Survey. Retrieved 28 November 2017.
  18. Jump up ^ "VONA".
  19. Jump up ^ "Bali's Mount Agung volcano erupts". BBC News. 21 November 2017. Retrieved 21 November 2017.
  20. Jump up ^ Regular bulletins are posted on the website of the Indonesian National Disaster Management Agency.
  21. ^ Jump up to: a b "Gunung Agung volcano (Bali, Indonesia): eruption has begun". Volcano Discovery. 25 November 2017. Retrieved 26 November 2017.
  22. Jump up ^ "'Get out now' 100,000 people told as Bali volcano continues to spew ash". Metro. 27 November 2017. Retrieved 27 November 2017.
  23. Jump up ^ "A volcanologist explains Bali eruption photos". BBC News. 27 November 2017. Retrieved 28 November 2017.
  24. Jump up ^ Saifulbahri Ismail (27 November 2017). "Mount Agung eruption: Bali airport closed, flights cancelled". CNA. Retrieved 27 November 2017.
  25. ^ Jump up to: a b "Locals Watch As Lahars From Mount Agung Sweep Away Rice Fields". VIVA Indonesia (in Indonesian). 27 November 2017. Retrieved 27 November 2017.
  26. Jump up ^ "Mount Agung: Bali volcano alert raised to highest level". BBC News Online. Retrieved 27 November 2017.
  27. ^ Jump up to: a b "Life-saving technology provides alert as Bali's Mount Agung spews ash, raises alarm". www.pdc.org. Archived from the original on 1 December 2017. Retrieved 28 November 2017.
  28. Jump up ^ "Volcanic ash update for Mount Agung". Australian Government Bureau of Meteorology. 27 November 2017. Retrieved 27 November 2017.
  29. Jump up ^ "Indonesia reopens Bali airport as wind clears volcanic ash". Reuters.com. 2017-11-29.
  30. ^ Jump up to: a b "Bali volcano: live updates on Mount Agung eruptions as airport reopens". Evening Standard. 2017-11-29.
  31. Jump up ^ Volcano erupts in Indonesia's Bali, airport remains safe
  32. Jump up ^ [1]
  33. Jump up ^ "Bali volcano eruption: Mount Agung spews volcanic ash triggering CLOSURE of airport". Express Newspapers. 29 June 2018. Retrieved 29 June 2018.
  34. Jump up ^ "Mount Agung: Bali flight chaos continues as more airlines cancel". The West Australian. 29 June 2018. Retrieved 29 June 2018.
  35. Jump up ^ "700 flee 'thunderous' explosions and lava as Mount Agung erupts again". ABC News. 2018-07-03. Retrieved 2018-07-04.
  36. Jump up ^ "Lombok International Airport closed due to volcanic ash from Mount Agung". Retrieved 29 November 2017.
  37. Jump up ^ "Bali volcano: State of emergency EXTENDED as Lombok airport closed over dangerous ash". Retrieved 30 November 2017.
  38. Jump up ^ "Bali airport remains closed for a third day". Retrieved 29 November 2017.
  39. Jump up ^ "Mount Agung: Bali Airport Closed And 59,000 Passengers Affected By Cancelled Flights". Retrieved 29 November 2017.
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Income elasticity of demand

Income elasticity of demand

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In economics, income elasticity of demand measures the responsiveness of the quantity demanded for a good or service to a change in the income of the people demanding the good. It is calculated as the ratio of the percentage change in quantity demanded to the percentage change in income. For example, if in response to a 10% increase in income, the quantity demanded for a good increased by 20%, the income elasticity of demand would be 20%/10% = 2.0

Contents

  • 1 Interpretation
  • 2 Mathematical definition
  • 3 Types of income elasticity of demand
  • 4 Selected income elasticities
  • 5 See also
  • 6 Notes
  • 7 References

Interpretation[edit]

Inferior goods' demand falls as consumer income increases.
  • A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes.
  • A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand. If income elasticity of demand of a commodity is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.
  • A zero income elasticity of demand occurs when an increase in income is not associated with a change in the demand of a good. These would be sticky goods.

Income elasticity of demand can be used as an indicator of industry health, future consumption patterns and as a guide to firms investment decisions. For example, the "selected income elasticities" below suggest that an increasing portion of consumer's budgets will be devoted to purchasing automobiles and restaurant meals and a smaller share to tobacco and margarine.[1]

Income elasticities are closely related to the population income distribution and the fraction of the product's sales attributable to buyers from different income brackets. Specifically when a buyer in a certain income bracket experiences an income increase, their purchase of a product changes to match that of individuals in their new income bracket. If the income share elasticity is defined as the negative percentage change in individuals given a percentage increase in income bracken the income-elasticity, after some computation, becomes the expected value of the income-share elasticity with respect to the income distribution of purchasers of the product. When the income distribution is described by a gamma distribution, the income elasticity is proportional to the percentage difference between the average income of the product's buyers and the average income of the population.[2]

Mathematical definition[edit]

ϵ Y = %   change in demand %   change in income {\displaystyle \epsilon _{Y}={\frac {\%\ {\mbox{change in demand}}}{\%\ {\mbox{change in income}}}}} \epsilon _{Y}={\frac  {\%\ {\mbox{change in demand}}}{\%\ {\mbox{change in income}}}}

More formally, the income elasticity of demand,   ϵ d {\displaystyle \ \epsilon _{d}} \ \epsilon _{d}, for a given Marshallian demand function Q ( I , P → ) {\displaystyle Q(I,{\vec {P}})} Q(I,{\vec  {P}}) for a good is

ϵ d = ∂ Q ∂ I I Q {\displaystyle \epsilon _{d}={\frac {\partial Q}{\partial I}}{\frac {I}{Q}}} \epsilon _{d}={\frac  {\partial Q}{\partial I}}{\frac  {I}{Q}}

or alternatively:

ϵ d = Y 1 + Y 2 Q 1 + Q 2 × Δ Q Δ Y {\displaystyle \epsilon _{d}={Y_{1}+Y_{2} \over Q_{1}+Q_{2}}\times {\Delta Q \over \Delta Y}} \epsilon _{d}={Y_{1}+Y_{2} \over Q_{1}+Q_{2}}\times {\Delta Q \over \Delta Y}

This can be rewritten in the form:

ϵ d = d ln  Q d ln  I {\displaystyle \epsilon _{d}={\frac {d\ln Q}{d\ln I}}} \epsilon _{d}={\frac  {d\ln Q}{d\ln I}}

With income I {\displaystyle I} I, and vector of prices P → {\displaystyle {\vec {P}}} {\vec {P}}.

Many necessities have an income elasticity of demand between zero and one: expenditure on these goods may increase with income, but not as fast as income does, so the proportion of expenditure on these goods falls as income rises. This observation for food is known as Engel's law.

Types of income elasticity of demand[edit]

There are five possible income demand curves:

1. High income elasticity of demand:

In this case increase in income is accompanied by relatively larger increase in quantity demanded.

2. Unitary income elasticity of demand:

In this case increase in income is accompanied by same proportionate increase in quantity demanded.

3. Low income elasticity of demand:

In this case increase in income is accompanied by less than proportionate increase in quantity demanded.

4. Zero income elasticity of demand:

This shows that quantity bought is constant regardless of changes in income.

5. Negative income elasticity of demand:

In this case increase in income is accompanied by decrease in quantity demanded.

Selected income elasticities[edit]

  • Automobiles 2.98[3]
  • Books 1.44
  • A person's own life (also called Value of Statistical Life) 0.50 to 0.60 [4]
  • Restaurant Meals 1.40
  • Tobacco 0.64
  • Margarine −0.20
  • Public Transportation −0.36[5]

Income elasticities are notably stable over time and across countries due to the law of one price.[6]

See also[edit]

  • Cross elasticity of demand (CED)
  • Price elasticity of demand (PED)
  • Price elasticity of supply (PES)

Notes[edit]

  1. Jump up ^ Frank, Robert (2008). p. 125
  2. Jump up ^ Bordley and McDonald.
  3. Jump up ^ Samuelson; Nordhaus (2001). p.94.
  4. Jump up ^ WK Viscusi (2003). "The value of a statistical life: a critical review of market estimates throughout the world". Journal of risk and uncertainty.
  5. Jump up ^ Frank (2008) 125.
  6. Jump up ^ Perloff, J. (2008). p.105.

References[edit]

  • Bordley; McDonald. "Estimating Income Elasticities from the Average Income of a Product's Buyers and the Population Income Distribution". Journal of Business and Economic Statistics.
  • Perloff, J. (2008). Microeconomics Theory & Applications with Calculus. Pearson. ISBN 978-0-321-27794-7.
  • Samuelson; Nordhaus (2001). Microeconomics (17th ed.). McGraw-Hill.
  • Frank, Robert (2008). Microeconomics and Behavior (7th ed.). McGraw-Hill. ISBN 978-0-07-126349-8.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Income_elasticity_of_demand&oldid=842246719"
Categories:
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  • Elasticity (economics)

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