This paper analyses the geographical variability of the taxation imposed on households by Italian regional, provincial and municipal administrations (as a whole and by each governance level) between 2012 and 2015, the period immediately before a ceiling was imposed on the main local rates. In order to deal with the complexity of regional taxation and with the need to provide an unbiased comparison of the local tax burden across the country, the paper uses a representative household, comparable with the Italian average in terms of income, number of members, consumption and real estate holdings. The study provides an estimation of the main local taxes incurred by this representative household for each provincial capital in Italy.
The results show that taxation is higher for households living in southern provincial capitals, in regions under ordinary statutes (RSO) compared with those under special statutes (RSS), and in larger cities. Moreover, there is evidence of heavier taxation in places where local governments are in financial distress or when they appear to be less able to collect their revenues. These differences across areas appear to have increased between 2012 and 2015.
