/StructParents 7 Aransi, I. O. /Resources << /Type /Group Taxes, fees, and user charges are considered "own-source" revenue. /Type /Page Developing countries revenue growth is hampered by a . (2006). The involvement of leadership as well as all relevant departments and municipalities would help to ensure proper implementation across all levels. >> Norton Francis and Frank Sammartino (2015). 0000003348 00000 n What are the major federal excise taxes, and how much money do they raise? Furthermore, the funding that municipalities receive from other government entities is decreasing. Social acceptance. A limited number of charges and taxes ensures higher social acceptance and minimal collection leakage. Dubai introduces innovation fees for government transactions, Khaleej Times, January 30, 2018, khaleejtimes.com. The logic is that, in areas where the revenue capacity is high, a relative higher tax . In 2019, 4 percent of local government general revenue came directly from the federal government (e.g., federal funds for local transportation projects) and 31 percent came from state governments (the numbers do not sum to the total share from intergovernmental transfers because of rounding). What types of nonemployer-sponsored retirement savings accounts are available? But presently, the level of development in rural areas since when local government authorities have been created is not encouraging. The reforms #hich gave recognition to, the local level #ere ta$en care of. Annual Survey of State and Local Government Finances. /Type /Group /Tabs /S What is the experience of other countries with national retail sales taxes? /Contents 29 0 R =s`Eu00Fu@dH*e&PtD\ \ v B#L2]\m Ayodele, I. O., & Sunday, A. E. (2009). /XObject << The share from intergovernmental transfers also fluctuated somewhat over time, falling from 43 percent of general revenue in 1977 to 36 percent in 2017. Maintaining public support is critical to the longer-term viability of such efforts, and cities must create an attractive business climate. Contemporary issues in local government administration in Nigeria. Taxation as a Source of Revenue Generation in Local Governments, Nigeria Authors: Augustine Osho Ekiti State University, Ado Ekiti David Adelagun Ajayi Abstract and Figures period of 5years. To meet rising expectations for service delivery amid tight budgets, municipal governments must increase revenues from existing sources as well as create new revenue streams. We have found that this effort has led to a year-over-year increase in municipal revenues of 30 percent. 3.16.1 Introduction. What are the sources of revenue for the federal government? What is the role of monetary policy in alleviating economic downturns? Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. 2 0 obj To serve as the third tier of government through which appropriate services and development are made in response to the wishes of local community through their representatives. /Meta43 34 0 R /Tabs /S /F1 20 0 R Tax is a compulsory levy imposed by government on individuals and companies, for the various legitimate function of the state (, Tax is a necessary ingredient for civili"ation. \\jG*"ktVJE What is the TCJA base erosion and anti-abuse tax and how does it work? What tax incentives encourage alternatives to fossil fuels? 14 0 obj https://doi.org/10.1007/978-3-030-73875-4_17, DOI: https://doi.org/10.1007/978-3-030-73875-4_17, eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0). Transfers fell from 1977 through most of the 1980s but increased slowly though the 1990s. /MediaBox [0 0 595.32 842.04] Although local government revenue was about the same relative to gross domestic product in 1977 (8.6 percent) and 2017 (8.7 percent), it has fluctuated over the period (figure 3). B)`g5(^S1,=ql&{YwEzLgH`g\zwnka \ji2(-.$(ULd\y=fUgW +Oq^!PEcmht?&TV)nP-kqs+Y: Problems of revenue generation in local government administration in Nigeria. endobj How might the taxation of capital gains be improved? What are itemized deductions and who claims them? >> Fines. <>>> (2011). nQt}MA0alSx k&^>0|>_',G! /Kids [4 0 R 5 0 R 6 0 R 7 0 R 8 0 R 9 0 R 10 0 R 11 0 R 12 0 R 13 0 R] They provided 22 percent of state and local general revenues in 1977, dropped to a low of 16 percent in 1989, and returned to 22 percent in 2003. 0000003920 00000 n Urban Institute, Brookings Institution, and individual authors, 2022. /Resources << 3.5 Local government revenue sources by jurisdiction 7 3.6 Local government expenses by purpose 8 3.7 Taxation revenue share by sphere of government and source of revenue 8 3.8 Share of total taxation revenue by sphere of government over time 9 3.9 Vertical fiscal imbalance in Australia 10 4. /Image8 18 0 R >> Aravind Boddupalli, Tracy Gordon, and Lourdes German (2021), State and Local Government Revenues and Racial Disparities We'll email you when new articles are published on this topic. As a local government leader, you're pressed to keep up with the immediate needs of your community during the COVID-19 crisis. Would a national retail sales tax simplify the tax code? /Font << /CS /DeviceRGB << % /MediaBox [0 0 595.32 842.04] What are the major federal payroll taxes, and how much money do they raise? /S /Transparency Perhaps the simplest and most straightforward approach across each of the four revenue streams would be to charge more. Who benefits from the deduction for charitable contributions? What does it mean for a government program to be off-budget? For existing land lease contracts, cities could maximize value through renegotiation or cancellation and retender based on tenant response. However, the composition of tax revenue has changed somewhat. 0v=.7&YP ?SfqZBEFowu8-RmHaav,Ax5dT# Other strategies, such as payment plans, can also reduce leakage and increase collections. As a result of these twin trends, a majority of the municipalities around the world are struggling to increase revenues while facing structural budget shortfalls that threaten service delivery and quality. <>stream share. /F7 42 0 R Emerging countries and regions will see the greatest increase in their urban populations, and China, India, and Nigeria represent slightly more than a third of the projected growth in that time frame. What are error rates for refundable credits and what causes them? /S /Transparency Revenue generation in Nigeria local governments is principally derived from tax. Revenue generation: Its impact on government developmental effort (A study of selected local council in Kogi East senatorial district). Furthermore, technological advancements can aid increased surveillance. Following the clear identification of interventions and opportunities, cities can set priorities based on social acceptance, economic impact, and ease of implementation. >> Since 1977, property taxes as a share of combined state and local general revenues have declined while charges have increased. What is the difference between refundable and nonrefundable credits? All other taxesincluding corporate income taxes, hotel taxes, and business license taxesprovided $40 billion in revenue (2 percent). Meanwhile, housing-program transfers are about 40 percent of federal transfers to local governments. It is therefore recommended that these factors that affect administrative functions be addressed; staff salaries should be paid early; the little resources at hand should be utilized in building infrastructural facilities, and the constitutional laws and bye laws should be reviewed for proper understanding of local government autonomy, power and functions as the third tier of government. 2018. As such, federal transfers as a share of local general revenue will likely look different for these yearsbut Census has not yet published that data. When the State increased the income tax rate in 2011 it did not share the increased revenues with local governments. How do phaseouts of tax provisions affect taxpayers? << /Contents 56 0 R Who bears the burden of the corporate income tax? What is the Canadian experience with a VAT? X-ray of Local government administration in Nigeria. I. I. ntroduction /Font << 11 0 obj Introduce innovative fees and charges. <>stream What would and would not be taxed under a VAT? All revenue data are from the US Census Bureaus Annual Survey of State Government Tax Collections. 8. Fix the home. Today, the LGDF receives only 6.06% of total personal income tax the state receives, a reduction . Local governments collected $1.7 trillion of general revenue in 2017. wG xR^[ochg`>b$*~ :Eb~,m,-,Y*6X[F=3Y~d tizf6~`{v.Ng#{}}jc1X6fm;'_9 r:8q:O:8uJqnv=MmR 4 What was the experience with return-free filing in California? Local governments in Nigeria have developed over a number of years. Majority And these sources tend to be far from optimized: local governments are often unaware of how to get more from existing sources and lack the resources to mount such efforts. /XObject << /F1 20 0 R HyTSwoc [5laQIBHADED2mtFOE.c}088GNg9w '0 Jb The Political Economy of Colonialism and Nation-Building in Nigeria, https://doi.org/10.1007/978-3-030-73875-4_17, Shipping restrictions may apply, check to see if you are impacted, https://www.odi.org/events/282-innovations-poverty-reduction-role-local-government, Political Science and International Studies, Political Science and International Studies (R0), Tax calculation will be finalised during checkout. How does the current system of international taxation work? Tax as a financial charge, is the main source of revenue generation for any government. A 2016 study conducted by the Australia Institute concluded that the Finnish model would yield a 12 percent increase on average in the value of fines issued by five states in Australia. What would the tax rate be under a national retail sales tax? For example, the federal government sends K-12 education funds to state governments that then distribute the money to local governments. Local governments collected $509 billion from property taxes in 2017, or 30 percent of local government general revenue. 10. Government and to the State Governments. 3. >> What is the difference between carryover basis and a step-up in basis? In 2019 inflation adjusted-dollars, combined state and local general revenue increased from $1.2 trillion in 1977 to $3.5 trillion in 2019, or a 188 percent increase. Governments should ensure that fee levels cover the costs of services being provided in the majority of cases. McKinsey_Website_Accessibility@mckinsey.com. /Meta99 77 0 R >> This need underscores the eagerness on the part of state and local governments and even the federal government to look for State and Local Finance Data: Exploring the Census of Governments. /CS /DeviceRGB /Meta52 49 0 R To serve as an intermediary between government at the center and local communities. From 2010 to 2016, for example, central government funding as the share of total municipal revenue fell by approximately 12 percent, on average, across all countries in the Organisation for Economic Co-operation and Development (OECD) /StructParents 5 /Font << 14 0 obj /Image20 81 0 R /GS31 30 0 R >> What are state rainy day funds, and how do they work? What is the Highway Trust Fund, and how is it financed? /Length 5747 /F7 42 0 R How do flexible spending accounts for health care expenses work? In so doing, they impose some taxes and rates on these economic activities as a way of generating funds for their Catawba Publishing Company. What are Opportunity Zones and how do they work? For example, cities could institute new charges for the disposal of food waste. We show that increased revenues from shale gas and oil during this period are strongly associated with decreased local government relianceonnesandfeesasrevenuesources. /S /Transparency 5 0 obj 0000002809 00000 n /Meta57 46 0 R Revenue has been found to be nose diving from time to time due to the weakness in the control framework that exists in the public sector. /Meta82 68 0 R What are tax expenditures and how are they structured? Journal of Economics and Sustainable Development, 7(8),113123. 3 0 obj Strategic control and revenue generation: A critical success factor in local government using the balanced scorecard. The American Recovery and Reinvestment Act of 2009 created a sharp uptick in transfers from the federal government between 2009 and 2011, peaking at 25 percent of state and local revenues in 2010 and 2011, before falling back to 22 percent in 2012. endstream One strategy that cities have followed is introducing an amnesty program for delinquent parking tickets that waives penalties and additional fines as an incentive for motorists to pay up. Are the Social Security trust funds real? What are the major options for comprehensive tax reform? 2 0 obj How would the tax system need to change with return-free filing? /Meta63 59 0 R /Type /Page In Los Angeles, for instance, developers can obtain an expedited engineering permit for a surcharge of 40 percent of the permits cost. /F5 40 0 R Aravind Boddupalli and Kim Rueben (2021), Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012 2.1.2 Section 81 of the Local Government Act, 1997 (amended) allows Local Government to mobilise revenue in form thof fees and taxes as specified in the 5 schedule. What policy reforms could simplify the tax code? Accessed 18 July 2016. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Of selected local council in Kogi East senatorial district ) of 30 percent of government! 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