Municipalities often grant exemptions from the “territorial economic contribution”, a local property and value-added tax paid by businesses, in order to attract jobs (OECD, 2015b: 39). In doing so, they often encourage investment in suburban or peri-urban locales, which is contrary to spatial development objectives. Finally, local governments also make too little use of their power to modulate taxes on new low-density construction, while a number of measures to ease property access give undue encouragement to new construction at the expense of renovations (OECD, 2015: 39).