%PDF-1.4 /F5 40 0 R /GS7 17 0 R n effective 'ocal -overnment system rests ma%orly on the availability of human, governments development. /StructParents 0 /XObject << >> How does the tax system affect US competitiveness? >> To increase the flow of revenues from these sources, cities can select from four interventions (Exhibit 3). Before the crisis, long-term structural deficits were persistent for both individual governments and the entire sector as spending plans and patterns outpaced governments' revenue-generating capacity. 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. Sales taxes (general and selective) provided local governments $124 billion (7 percent of general revenue) and individual income taxes accounted for $33 billion (2 percent). >> >> In our experience, governments can capture significant valueup to 50 percent of potential additional revenuesby implementing measures linked to effectiveness such as enhancing collections and audit processes or better asset monetization. Whats the difference between front-loaded and back-loaded retirement accounts? >> Todaro, M. P. (2015). /GS31 30 0 R >> What are the major options for comprehensive tax reform? Miscellaneous sources, such as special assessments, provided 7 percent of state general revenue. The capacity of local government to generate revenue internally is one very crucial consideration for the creation of a local council. /Image8 18 0 R What are itemized deductions and who claims them? 7 At the same time, most states place restrictions on local property taxation, with limits that fall into three main types: rate limits, assessment limits, and levy limits. the federal and state governments in Nigeria to boost revenue generation under a programme known as the Accelerated Revenue Generation (ARG) Programme. Key 2022 Takeaways. And as the new normal begins to take shape, you'll also have to plan for the near- and long . What would be the effect of a national retail sales tax on economic growth? Anyone you share the following link with will be able to read this content: Sorry, a shareable link is not currently available for this article. >> Eneanya, A. N. (2012). /Meta56 45 0 R /Image91 75 0 R Intergovernmental transfers accounted for 36 percent of local general revenue in 2017 (figure 1). The involvement of leadership as well as all relevant departments and municipalities would help to ensure proper implementation across all levels. Small Business Effect: Potential meaningful. Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. Taxes provided 42 percent of local general revenues, including: Charges, such as city revenue from sewerage and parking fees, when combined, provided 18 percent of local general revenues in 2019. /Contents 64 0 R /Image97 76 0 R Tracy Gordon, Richard C. Auxier, and John Iselin (2016), Governing with Tight Budgets; Long Term Trends in State Finances 5/27/2020. #$ e-`w6w How receptive citizens and businesses are to a given intervention in a revenue stream can have significant impact on the interventions long-term viability. How do state and local property taxes work? This can be accomplished through moves that wont adversely affect public opinion or a citys competitiveness in attracting businesses and economic development. state and local government with a recommendation that conscious effort be made to allocate more revenues to states and local governments. 0000003592 00000 n stream 12 0 obj Performance meetings should be scheduled on a weekly basis to track revenue generation and build ownership. 2023 Springer Nature Switzerland AG. Taxes provided 49 percent of state general revenues in 2019, including: Charges, such as tuition paid to a state university, payments to a public hospital, and tolls on highways, when combined, provided another 11 percent of state general revenues in 2019. Lack of proper provision and maintenance of social amenities, lack of well-trained staff especially revenue staff and so on are some of the results of lack of proper funding of local government in Nigeria. /F2 21 0 R The largest state and local general own-source funds came from charges and property taxes (both 17 percent), followed by individual income taxes and general sales taxes (both 13 percent),and selective sales taxes (6 percent). [/ICCBased 11 0 R] /Meta63 59 0 R /Image8 18 0 R 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. /Meta43 34 0 R endobj Since development demands a lot of capital, this study will critically analyze the relationship between local government finance system i.e. That amount includes intergovernmental transfers from the federal government but not transfers between state and local governments (which is why the combined total is less than the sum of the separate state and local totals listed below). Who bears the burden of a national retail sales tax? Fix the home. (All sources of local government general revenue do not sum to 100 percent because of rounding.) /CS /DeviceRGB /XObject << /F3 84 0 R >> Transfers from the federal government have fluctuated considerably over the past three decades. /Meta37 37 0 R What options would increase federal revenues? How Could We Improve the Federal Tax System? PubMedGoogle Scholar, Insitute of African Studies, Carleton University, Ottawa, Canada, 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG, Ntiwunka, G., Ayodele, T.M. The research instruments used for data collection were questionnaire and interview. >> 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. /F3 22 0 R In general, cities draw from four types of sources that each include numerous levers (Exhibit 2). The usual practice in this country (Nigeria) is that political parties and individual candidates often make The revenue systems of these governments eroded while the workloads and scope on the expenditure side of the state and local system budget . In contrast, revenues from charges steadily increased from 11 percent of general revenuein 1977 to 17 percent in 2019. 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. 'ocal governments in, over a number of years. Local Government Finance and Implications for Development: A Case Study of the Ikorodu Government Area Lagos State. /Image20 81 0 R Municipalities raise revenues by charging for services such as public parking, toll roads, waste management, and building permits, among others. /F2 21 0 R 4, Government Finances. What kinds of tax-favored retirement arrangements are there? /Tabs /S /F10 61 0 R A., & Adewoye, J. O. /Image8 18 0 R /F1 20 0 R A simulation of 8,760 h year-round was performed for the provincial market containing the integrated generation plant without energy storage. OECD fiscal decentralization database (object name Table 12: 1970 2016), OECD, accessed April 15, 2019, oecd.org. Urban-Brookings Tax Policy Center. Global Journal of Management and Business Research Administration and Management, 13(4), 1226. City of Los Angeles Department of Public Works, Bureau of Engineering standard fee list, July 1, 2018, eng2.lacity.org. Are the Social Security trust funds real? The rapid urbanization of the worlds population is well under way. /Tabs /S /Resources << Revenue Generation in Local Government Areas (Problems and Prospects) Filed in Accounting Project Topics, Current Projects by TMLT Editorials on July 20, 2021 /MediaBox [0 0 595.32 842.04] /CS /DeviceRGB Babcock University Press. /Resources << /MediaBox [0 0 595.32 842.04] 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. <> What would and would not be taxed under a VAT? /Type /Group How accurate are long-run budget projections? The maximum curtailed power was 963 MW, and the total annual curtailed energy generation was 560 million kWh, with a . 7 0 obj What transition rules would be needed for a national retail sales tax? What are the sources of revenue for local governments? (Exhibit 1). Nicole Badstuber, London congestion charge has been a huge success. /Pages 2 0 R Its time to change it,, Author Talks: The worlds longest study of adult development finds the key to happy living, The executives guide to new-business building, Generative AI is here: How tools like ChatGPT could change your business, Smart cities: Digital solutions for a more livable future, Dubai introduces innovation fees for government transactions,. /MediaBox [0 0 595.32 842.04] In 2019, transfers from the federal government provided 22 percent of combined state and local general revenues. In the last 10 years, Illinois has reduced the portion of income tax returned to cities and towns. Create new revenue streams. (2006). Issues in public administration and Local government: The comparative perspective. How does the deduction for state and local taxes work? How do US corporate income tax rates and revenues compare with other countries? Lucy Dadayan (reports are updated quarterly), Surveying State Leaders on the State of State Taxes endobj >> How do state and local corporate income taxes work? V)gB0iW8#8w8_QQj@&A)/g>'K t;\ $FZUn(4T%)0C&Zi8bxEB;PAom?W= 11 0 obj The history of man has sho#n that, No system or rules can be effective #heth, er foreign or nature unless it en%oys some, measures of financial independence. For example, the federal government sends K-12 education funds to state governments that then distribute the money to local governments. This unit has several responsibilities. Most cities have yet to unlock the full potential of their existing revenue sources, let alone tap into new streams. 9. <> When renegotiating existing leases, several levers can be utilized, such as increasing allowable floor-to-area ratio (FAR), collecting penalties for violations, amending contract duration and payment terms, and modifying plot use. 1 0 obj Since 1977, the share of local general revenue from taxes has remained steady at about 40 percent. How do state and local individual income taxes work? /Meta58 47 0 R Governments, with input from citizens, must decide how to manage risks >> the enabling law in form of local government act 1997 (amended). <>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 11 0 R 16 0 R 19 0 R 22 0 R 23 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Despite the numerous options available to generate more funding for city operations, elected officials must proceed carefully. 13 0 obj /MediaBox [0 0 595.32 842.04] revenue generation still remains poor due to local government being unable to exploit revenue areas because of the interference of State Government in local government affairs. (2016). /Count 10 This research work examines how the federal Government of Nigeria generate revenue and the development of Local Government Areas, Revenue Generation and the Development of Local Government Areas, 100% found this document useful (8 votes), 100% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Save Revenue Generation and the Development of Local Go For Later. If the use tax is not paid, the refund will be reduced by the amount of use tax determined to be due. Elected officials have four primary revenue sources, each containing multiple levers. The Local Government Act 462 of 1993 authorises and empowers the district assemblies to mobilise revenue in the form of rates, fees & fines, licences, rent, among others to help finance projects in their various areas of authority. 0000000016 00000 n >> Local governments include county governments, municipalities, townships, special districts (such as water and sewage authorities), and school districts. endobj What are the tax benefits of homeownership? Impact on economy. /Font << Local tax limitations: a primer Property taxes . endobj Local Effect: Beginning FY 2024, revenues potentially decrease for local governments that own and operate facilities that use the energy sources removed from the RPS, as discussed below. 2. Intergovernmental transfers accounted for 36 percent of local general revenue in 2017 (figure 1). Nicole Badstuber, London congestion charge has been a huge success. What are the consequences of the new US international tax system? . HyTSwoc [5laQIBHADED2mtFOE.c}088GNg9w '0 Jb What are the major federal payroll taxes, and how much money do they raise? One of the MMDAs involved in the use of recent ICTs to assist revenue mobilization is the AMA. The reforms #hich gave recognition to, the local level #ere ta$en care of. Agu (2010) examined the . The contribution of property taxes to general revenue declined from 34 percent in 1977 to 30 percent in 1979, fell to a low of 27 percent in 2000, then returned to 30 percent in recent years. >> /F7 42 0 R >> )U!$5X3/9 ($5j%V*'&*r" (,!!0b;C2( I8/ x- [ 0}y)7ta>jT7@t`q2&6ZL?_yxg)zLU*uSkSeO4?c. R -25 S>Vd`rn~Y&+`;A4 A9 =-tl`;~p Gp| [`L` "AYA+Cb(R, *T2B- 0v=.7&YP ?SfqZBEFowu8-RmHaav,Ax5dT# endobj Another 6percent of localgeneral revenue came from miscellaneous sources such as amounts received from the sale of property and interest from some investment securities. Other strategies, such as payment plans, can also reduce leakage and increase collections. How do financing methods affect the distributional analyses of tax cuts? Los Angeles, for example, charges higher fees for expedited permitting and licensing processes. % /Tabs /S Revenue generation: Its impact on government developmental effort (A study of selected local council in Kogi East senatorial district). Predicting Municipal Fiscal Distress: Aspiration or Reality? Cambridge, MA: Lincoln Institute of Land Policy. What are tax expenditures and how are they structured? If you would like information about this content we will be happy to work with you. Journal of Economics and Sustainable Development, 7(8),113123. Which tax provisions subsidize the cost of health care? Washington DC: Urban Institute. Each time, the city brought in $7 million to $9 million in revenue. To serve as the third tier of government through #hich appropriate services and, development are made in response to the #ishes of local community through their, &. Essentials of management. In 2013, Seoul introduced a volume-based food waste disposal charge that succeeded in reducing its daily food waste significantly. /Font << >> or improve local service delivery, though the opposite can also be true. With initial adjustments for relevance and size of potential revenue impact, cities can select the most promising streams as revenue generators. How did the Tax Cuts and Jobs Act change business taxes? New York, Scribner Press in Institute of Management and Leadership Professional Nigeria (2012). What are Roth individual retirement accounts? The percentage fell to a low of 8.0 percent in 1984 and peaked at 9.9 percent in 2009. Professional Import Duties Administrators This exercise involves analyzing the citys revenue baseline to determine current revenue generation across all streams and then comparing revenue streams against benchmarks for peer cities to identify any gaps. What is the new markets tax credit, and how does it work? Longman. Revenue generation is the main source of income to the Federal, State and local Governments. 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. This need underscores the eagerness on the part of state and local governments and even the federal government to look for What policy reforms could simplify the tax code? OECD fiscal decentralization database (object name Table 12: 1970 2016), OECD, accessed April 15, 2019, oecd.org. /F2 83 0 R Many local governments Authorities in Tanzania have reformed their tax collection systems in recent years, these results to increases in revenue collection (R EPOA, 2008). How do taxes affect the economy in the long run? Sarah Jindra, Chicagos ticket amnesty program begins today, WGN9, November 10, 2015, wgntv.com. Three local government officials were also interviewed. "Follow the Money: How to Track Federal Funding to Local Governments." Local government personnel can be trained to administer simple but adequate revenue generation instruments. n /, another reform of local government #as, established. >> Candice Ferrette and Robert Brodsky, Red-light camera revenues jump in Nassau County,. share. How do state earned income tax credits work? Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. How do the estate, gift, and generation-skipping transfer taxes work? How does the tax exclusion for employer-sponsored health insurance work? /Meta37 37 0 R Nchuchuwe, F. F. Local government finance in Nigeria in Olojede, I., Fajonyomi, B., & Fatile, J. =s`Eu00Fu@dH*e&PtD\ \ v B#L2]\m Something went wrong. Small businesses . Hb``$WR~|@T#2S/`M. /Type /Group /Resources << /Image8 18 0 R Wendthat,incitieswherearelativelyhighershareofrevenueiscollectedthrough nes, fees, and asset forfeitures, violent crimes are cleared at a relatively lower rate, 3 What is the effect of a lower tax rate for capital gains? 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. . /XObject << /Type /Group 0000002809 00000 n Following the clear identification of interventions and opportunities, cities can set priorities based on social acceptance, economic impact, and ease of implementation. Diesel fuel used in processing, manufacturing, refining, generating electricity, irrigation or farming, or by any hospital may /Type /Group How does the federal government spend its money? endobj 1 0 obj /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /Font << n /1, the 3ederal 4ilitary -overnment then issued, guidelines on local governments reforms. 0000002023 00000 n recommended that the local government should provide basic amenities of high quality. For existing land lease contracts, cities could maximize value through renegotiation or cancellation and retender based on tenant response. /ExtGState << >> /Resources << <>stream /StructParents 5 /XObject << >> /Group << %PDF-1.5 To guide price hikes, cities could use benchmarks to determine the acceptable range. In addition, elected officials must strike a tricky balance between raising taxes and fees and maintaining public support. What are the major federal excise taxes, and how much money do they raise? 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