 |
LET621S - LAND ECONOMICS AND TAXATION - 1ST OPP - NOV 2025 |
|
|
1 Pages 1-10 |
▲back to top |
|
|
1.1 Page 1 |
▲back to top |
nAmlBIA unlVERSITY
OF SCI En CE Ano TECH n OLOG Y
FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT
DEPARTMENT OF LAND AND SPATIAL SCIENCES
QUALIFICATION(S): BACHELOR OF PROPERTY STUDIES
BACHELOR OF LAND ADMINISTRATION
DIPLOMA IN PROPERTY STUDIES
QUALIFICATION(S) CODE: 08BOPS
07BLAM
NQF LEVEL: 6
06DIPS
COURSE CODE: LET621S
COURSE NAME: LAND ECONOM ICS AND TAXATION
EXAMS SESSION: NOVEMBER 2025
PAPER:
THEOR Y
DURATION: 3 HOURS
MARKS:
100
EXAMINER(S)
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
MR SAM UEL ATO K. HAYFORD
MODERATOR: MR VERINJAERAKO KANGOTUE
INSTRUCTIONS
1. Read the entire question paper before answering the Questions.
2. Please w rite clearly and legibly!
3. Please START EACH QUESTION ON A FRESH PAGE.
4. The q uestio n paper contains a tot al of 5 questions.
5 . You must answer ALL QUESTIONS.
6. Make sure your Student Number is on t he EXAMINATION BOOK{S).
PERMISSIBLE MATERIALS
1. Non-programmable Scientific Calculator
THIS QUESTION PAPER CONSISTS OF 11 PAGES {Including this front page and attached Append ix A)
|
|
1.2 Page 2 |
▲back to top |
Land Economics and Taxation
LET621S
Question 1
For each of the fo llowing statements indicate whether it is 'TRUE' or 'FALSE'. Each correct answer ca rries 1
mark.
1.1 With the physical and biological framework, the important test is feasibility not capability of the
natura l environment.
1.2 The threefold framework affecting land use includes consideration of land capability and suitability
for different uses.
1.3 Ricardo theory of land rent dwells on resource quality while Von Thunen's emphasis is on accessibility
as a component of Land Use capacity.
1.4 In Von Thunen's theory of location, differences in land use could be directly attributed to difference
in crop productivity (yield)
1.5 Climate change resilience is an important factor in the environmenta l aspect of the threefold land use
framework.
1.6 The three (3) framework affecting land use encourage participatory decision-making involving local
communities and stakeholders.
1.7 Except for location and distance to the market, Von Thunen's analysis held constant all the natural
features affecting land use.
1.8 Conflicts between agricultura l land use and urban development are not considered in the threefold
framework of land use.
1.9 The highest and best use of land is always identical to its present use.
1.10 Urban development often involves the revita lization of older neighbourhoods.
First Opportunity Question Paper
Page 2 of 11
November 2025
|
|
1.3 Page 3 |
▲back to top |
Land Economics and Taxation
LET6215
1.11 Land use ca pacity refers to the land's potentia l to support certain types of uses based on its physical,
environmental, and socio-economic characteristics.
1.12 The buoyancy of property taxes ma inly depends on the tax rate st ructure and t he methods used for
revaluing properties.
1.13 Procedural improvements alone will significantly increase property tax revenue, even if policies
around rate-setting are not reviewed.
1.14 Devolving control of property tax policy to local governments is suggested because local governments
are directly impacted by property taxes.
1.15 Contracting out property tax administration functions is discouraged for central governments
responsible for property tax collection.
1.16 Land use capacity assessments only focus on how land is currently used and do not consider future
use options.
1.17 Public perception can greatly affect the success of a property development project.
1.18 The concept of highest and best use describes the most profitable and legally allowed use of a piece
of land that is physically possible.
1.19 In most economic systems, the market is the primary mechanism for allocating resources, with public
intervention amending the market forces in cert ain spheres and replacing them in others.
1.20 True or False: Centra l governments often restrict high property tax rates because they do not directly
benefit financially from t he property tax revenues.
1.21 Property taxes account for a large proportion of total public sector t ax revenues in developing
co un tries .
First Opportunity Question Paper
Page 3 of 11
November 2025
|
|
1.4 Page 4 |
▲back to top |
Land Econom ics and Taxation
LET62 1S
1.22 Local governments tend to re ly more on indirect taxes, transfers, and discretionary grants than on
property tax revenues because of political challenges in administering prope rty taxes.
1.23 Landlords usually make rental concessions during periods when the supply of t enants is low. This
occurs during and when an economy experiences rapid growth.
1.24 Land by itself has litt le economic value until it is used in conjunction with inputs of capital, labour and
management.
1.25 The concept of use capacity is used in land economics t o give an indicat ion of relative abilities of a
single parcel t o provide net returns or other satisfactions.
1.26 Legislation and policies form part of t he social dimension in t he threefold land use framework.
[26]
Question 2
2.1 Attached as appendix A (i.e. Page 7) is a graph illustrating the effect of transportation cost on land
rent producing capacity associated wit h t he use of land at various locations from Epukiro, the market.
With the information provided answer questions i) to vi) below. (All figures are in N$ per to nne of
produ cts ).
i) At which location (town) does No rent margin occur and why?
(2)
ii) Between which two towns are the locations considered profitable for business?
( 1)
iii) What is the amount of land rent earned per tonne fo r land use in Tses?
(1)
iv) If operators of Tses land are to enjoy any land rent, what is expect ed of them and by what
amount (in your opinion) will lead to that.
(2)
v) Estimate the amount of land rent per tonne associated with the use of Ara nos and Aminius lands
located at a distance of 25km and 35km respectively from the market.
(3)
First Opportunity Question Paper
Page 4 of 11
November 2025
|
|
1.5 Page 5 |
▲back to top |
Land Economics and Taxation
vi) What is the land rent associated with the location considered optimal?
LET621S
(1)
vii) At the 'No rent margin' what is the total cost of transportation per tonne?
(1)
viii)At the 'No rent margin' what is the total cost of production per tonne including transport to the
market?
(1)
2.2 Differentiate between any two (2) of the fo llowing terms as frequently used in the Law of Dim inishing
Returns.
(6)
i) Total Cost and Total Revenue
ii) Average Cost and Average Revenue
iii) Marginal Physical Product and Marginal Returns
iv) Average physical product and marginal cost
2.3 List any three (3) factors that may cause changes in the Use-Capacity of land.
(3)
[21]
Question 3
3.1 The yield ca pacities of four grades of land are respectively given in the table below.
Land
Unit of Output (in tonnes)
A
B
150
z
C
D
112
98
Cost of Capita l and labour amounting to N$450 was incurred on each of these tracts of land .
Additional Information
• Cost of capital experienced a uniform upward adjustment by N$45
• A combined total of 480 tonnes of output was harvested from the four (4) parcels of land.
i) Calculate the land rent amount attributable to each tract of land when they are utilized
sequentially in production. [correct your answers to the two decimal place].
(13)
3.2 Ca lculate the expected land value if an expected gross return of N$3580 is discounted at 5% interest
rate for 10 years. Note that an outgoing amounting to N$580 is still outstanding.
(3)
This is calculated as follows.
First Opportunity Question Paper_
Page 5 of 11
November 2025
|
|
1.6 Page 6 |
▲back to top |
Land Economics and Taxation
3.3 State the meaning of 'Tax base' as used in administration of property tax.
LET621S
(2)
3.4 Mention any three (3) items about a rateable property contained in a Provisional Valuation Roll.
(3)
[21]
Question 4
4.1 Briefly discuss any two (2) challenges faced in the administration of property tax in a country of your
choice, focusing particularly on their implications for revenue mobilization.
(6)
4.2 What recommendations would you suggest to address the situation? Please discuss two (2)
recommendations briefly.
(6)
[12]
Question 5
Read each question carefully. Among the alternative answers, choose the letter that correspond t o the
best/correct answer. Each correct answer carries 1 mark.
5.1 Which of the following does NOT directly influence land values?
A) Rent paying capacity of the land
B) Expected productivity or returns
C) speculative demand
D) Number of farm animals
5.2 Wh ich factor does NOT directly affect land use capacity?
A) Soil type
B) Slope gradient
C) Owner's personal preference
D) Climate conditions
First Opportunity Question Paper
Page 6 of 11
November 2025
|
|
1.7 Page 7 |
▲back to top |
Land Econom ics and Taxation
5.3 Land use capacity primarily aims to determine:
A) The maximum market price of land
B) The sustainable potential uses of land to prevent degradation
C} The historical uses of the land
D) Ownership boundaries
LET621S
5.4 One major difficulty in identifying the liable party for property t ax arises because:
A) The title registry is often poorly organized and unreliable
B) Absentee landlords always pay the taxes
C} Tenants are usually the only liable parties
D) The lega l framework clearly defines al l taxpayers
5.5 High property turnover and inadequate title registration in some Francophone countries cause tax
administrators to:
A) Send tax bills to the current occupant only
B) Deliver tax bills to the recorded owner regardless of actual ownership
C} Ignore property taxes altogether
D) Frequently update the fiscal cadastre
5.6 Rent paying ability of land is mainly influenced by:
A) The land's productive capacity and location
B) The current owner's income
C} The climate of the nearest city
D) Land capability classification only
5.7 Which method is commonly used to analyze land capability?
A) Soil sampling and GIS mapping
B) Market surveys alone
C} Oral history interviews
D) Political boundary mappi ng
5.8 In Nigeria, who typica lly holds the primary responsibility for paying property taxes?
A) Tenant s
B) Property owners
First Opportunity Question Paper
Page 7 of 11
November 2025
|
|
1.8 Page 8 |
▲back to top |
Land Economics and Taxation
C) Agents acting on beha lf of owners
D) Government authorities
LET621S
5.9 W hy might tenants or agents be reluctant to pay taxes on behalf of property owners?
A) They have no legal right to do so
B) They cannot recover the tax costs from rents easily
C) They prefer to pay taxes directly
D) Absentee landlords usually hand le taxes themselves
5.10 What characteristic is least likely to reduce land's rent paying abi lity?
A) Proximity to urban centers
B) Poor soil fertility
C) Access to transportation
D) Severe physica l limitations
5.11 What does highest and best use of land exclude?
A) Use that is legally permitted
B) Use that maximizes financia l return
C) Use that is physically impossible
D) Use that is environmentally sust ainable
5.12 Which of the following best describes the relationship between land use capacity and rent paying
ability?
A) Higher land use capacity generally increases rent paying ability
B) Rent paying abi lity is independent of land use capacity
C) Greater rent paying ability decreases land use capacity
D) Land use capacity is on ly a legal term and does not affect rent
5.13 What main ly influences the level of land rent in agricultural land?
A) Proximity to urban employment centers
B) So il fertility and expected productivity
C) The owner's persona l wealth
D) Length of ownership
First Opportunity Question Paper
Page 8 of 11
November 2025
|
|
1.9 Page 9 |
▲back to top |
Land Economics and Taxation
5.14 The capitalization rate in land economics is used to:
A) Ca lculate soil nutrient levels
B) Measure lease duration
C) Convert expected land rents into land values
D) Determine property tax brackets
LET6215
5.15 Which of the following is a major challenge in administering property taxes in many African cities?
A) Over-assessment of properties resulting in excessive tax collections
B) The absence of detailed and regularly updated fisca l cadastral maps
C) Efficient delivery of tax bills due to we ll-established street addressing systems
D) High penalties that deter property tax evasion
5.16 Why is ta x liability difficult to link to properties in many African urban areas?
A) Properties are identified mainly through canvassing rather than fo rm al titles
B) The presence of detailed cadastral maps that separate parcels incorrectly
C) The existence of well-named streets but irregular house numbering
D) Excessive updating of property records causing confusion
5.17 What is a fundamental reason that many assessed properties in Africa remain unpaid?
A) The existence of an idea l fiscal cadastre with clear property codes
B) The lack of an efficient monitoring and enforcement system for tax co llection
C) The widespread use of tax maps and forma l street addresses
D) Regular updating of property rolls leading to taxpayer confusion
5.18 In cities lacking street addresses and numbered houses, what is the consequence for property
taxation?
A) Tax bills are easier to deliver and enforce penalties
B) Properties become easier t o assess accurately
C) Tax liabilities cannot be accurately linked to property owners, leading to widespread non-
payment
D) The fiscal cadastre system works optimally due to ca nvassing
First Opportunity Question Paper
Page 9 of 11
November 2025
|
|
1.10 Page 10 |
▲back to top |
Land Eco nomics and Taxation
5.19 How does increasing dista nce fro m employment centres generally affect land rent?
A) Increases rent due to privacy
B) Decreases rent due to lower accessibility
C) No effect on rent
D) Makes rent more volatile
LET621S
5.20 Wh ich factor has a positive correlation w ith land rent but a negative correlation w ith population
density?
A) Proximity to agricult ural land
B) Land productivity value
C) Le ngth of contract lease
D) Number of rural development funds
[20]
First Opportunity Question Paper
Page 10 of 11
November 2025
|
|
2 Pages 11-20 |
▲back to top |
|
|
2.1 Page 11 |
▲back to top |
AppENDIX A
1. . t.t1.u. ,+,+:i++ri1--M:rn1:;:fµ-f:+:r_itf~' "-::H t"':mH-:~+trt,t,•.·,.!,..i,1
H-lm-;.:;:rr.nn:rn:=i.:rnr-rr-;:n::rrp.n::;:;:r1m+r1-+-H+l•H+HFP+l+rr;:rnTT"H+l R •r'..JT-tmT-f.HT-l-Tll,'T~TI+-:Fl++li.
se this graph to answer Question 2.1 in your Question paper.
300
·1ff.TiuI...t.l+tl'J'1/.±.:J±-:±.!.:.l
V).
z
C
C
,@'!¾P:itf.,:
.,0.._.,
250
aQJ.
.....
u
f:!fF!
lTTT"
:::J."'"
:::,
"Cl
,0 _
a.
'+-
0
QJ
:::,
ro
>
"Cl
..Cr.o.,
V,
u0
..r.o.,
0
f-
Epukiro
(Market)
Ara nos
Aminius
Osire
Tses
Towns located at distance from the market
Paqe 11 of 11
production
and
marketing
costs
lttjjjJ:Jtm