Land-Value Capture in Bogotá: Case Studies on the Valorization Levy

doi:10.1596/43247

Publication:
Land-Value Capture in Bogotá: Case Studies on the Valorization Levy

dc.contributor.author	Ardila-Gomez, Arturo
dc.date.accessioned	2025-05-28T13:44:14Z
dc.date.available	2025-05-28T13:44:14Z
dc.date.issued	2025-05-28
dc.description.abstract	This note presents a comprehensive analysis of Bogotá’s experience with the betterment levy—contribución de valorización (CV)—as a land value capture (LVC) instrument to finance urban transport infrastructure. Focusing on five major programs implemented in 1995, 2005, 2010, 2013, and 2018, the note draws critical lessons for cities in the developing world seeking sustainable, equitable, and locally anchored financing mechanisms. Unlike much of the existing literature that isolates the betterment levy from broader fiscal dynamics, this note situates the levy within Bogotá’s evolving tax ecosystem, including property and sales taxes, and highlights the pivotal role of a modernized cadaster. It shows that while the betterment levy has never fully financed transport projects on its own, it has consistently contributed to closing funding gaps, especially when paired with improved tax collection and strategic debt use. The note concludes with ten actionable lessons for other cities, emphasizing the importance of enabling legislation, affordability assessments, city-wide standards, and citizen participation. It also underscores the need to consider the total tax burden on residents and the political economy of earmarked revenues. Sound financing sources generate significantly more revenue than the cost of collecting it. Bogotá’s experience demonstrates that even partial revenue from betterment levies can be transformative when embedded in a robust fiscal and institutional framework.	en
dc.identifier	http://documents.worldbank.org/curated/en/099051525160524023
dc.identifier.uri	https://hdl.handle.net/10986/43247
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	ECONOMIC GROWTH
dc.subject	SUSTAINABLE CITIES AND COMMUNITIES
dc.subject	BETTERMENT LEVY
dc.subject	LAND VALUE CAPTURE (LVC)
dc.subject	URBAN TRANSPORT INFRASTRUCTURE FINANCING
dc.title	Land-Value Capture in Bogotá	en
dc.title.subtitle	Case Studies on the Valorization Levy	en
dc.type	Report
dspace.entity.type	Publication
okr.date.disclosure	2025-05-28
okr.date.lastmodified	2025-05-28T12:06:36Z	en
okr.doctype	Economic & Sector Work
okr.docurl	http://documents.worldbank.org/curated/en/099051525160524023
okr.guid	099051525160524023
okr.identifier.docmid	P178297-3563de42-edb2-4caa-aa0c-e79a65d08beb
okr.identifier.doi	10.1596/43247
okr.identifier.externaldocumentum	40013700
okr.identifier.internaldocumentum	40013700
okr.identifier.report	201397
okr.import.id	7478
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	https://documents.worldbank.org/curated/en/099051525160524023/pdf/P178297-3563de42-edb2-4caa-aa0c-e79a65d08beb.pdf	en
okr.region.geographical	World
okr.sector	FY17 - Urban Transport
okr.sector	Transportation
okr.theme	FY17 - Jobs,FY17 - Adaptation,FY17 - Urban Development,FY17 - Job Creation,FY17 - Urban Planning,FY17 - Climate change,FY17 - Mitigation,FY17 - Public Transport
okr.theme	FY17 - Environment and Natural Resource Management,FY17 - Private Sector Development,FY17 - Urban and Rural Development
okr.topic	Macroeconomics and Economic Growth::Taxation & Subsidies
okr.topic	Urban Development::Transport in Urban Areas
okr.topic	Macroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.unit	Infra - Global Knowledge (ITRGK)