Prior to the 2011 state income tax increase local governments received a 10.0% share of the income tax revenue. /S /Transparency >> [/ICCBased 11 0 R] 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. And as the new normal begins to take shape, you'll also have to plan for the near- and long . What is the size of the opportunity? /Type /Group How large are the tax expenditures for retirement saving? 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. /Contents [14 0 R 15 0 R 16 0 R] Are the Social Security trust funds real? /F2 21 0 R How do phaseouts of tax provisions affect taxpayers? 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. This effect is the strongest in mostly rural and sparsely populated areas where lignite is mined and used for power generation. 8 Local governments collected $1.7 trillion of general revenue in 2017. Dubai instituted a knowledge dirham, a flat charge that applies to all government services. In: Oloruntoba, S.O. 10. 3. Local government personnel can be trained to administer simple but adequate revenue generation instruments. simply because of poor finances arising from ade8uate revenue generation drive. /Parent 2 0 R Indeed, each citys situation is inherently different and will require a unique combination of interventions and careful consideration to ensure the program is both economically and politically feasible. >> /CS /DeviceRGB Assets can include land monetization (such as land used by telcos for cell towers), appreciating land values, and commercial advertisements in public spaces, public markets, and shopping centers. Okwori, J., & Sule, A. How did the Tax Cuts and Jobs Act change business taxes? xb```b``a`24(!" /Font << 2023 Springer Nature Switzerland AG. Why is the VAT administratively superior to a retail sales tax? stream 14 0 obj /Contents 79 0 R /ExtGState << 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). What are the drawbacks of return-free filing? /Tabs /S /Tabs /S <>>> Local governments received about 32 percent of their general revenue from state government transfers (including indirect federal funds) and 4 percent directly from the federal government. But presently, the level of development in rural areas since when local government authorities have been created is not encouraging. In 2020 and 2021, Congress transferred a large amount of funds to state governments as part of the CARES Act, the Coronavirus Response and Relief Supplemental Appropriations Act (part of the December 2020 omnibus bill), and the American Rescue Plan. >> Catawba Publishing Company. Municipalities often levy charges and taxes on property owners as well as on income, sales, and other transactions. What are automatic stabilizers and how do they work? Allocating resource revenues directly to citizens may reduce poverty and improve natural resource revenue accountability, though it may also starve the government of revenues for public investments. r_ w=[,()l9"] JETfKIXpEq)h5-B(3+r;&uJ_=~_9=0 B)`g5(^S1,=ql&{YwEzLgH`g\zwnka \ji2(-.$(ULd\y=fUgW +Oq^!PEcmht?&TV)nP-kqs+Y: /GS31 30 0 R (2009). 9. 4 Through leases, joint ventures, and joint development agreements, municipalities can generate additional income. /Group << What are Roth individual retirement accounts? /F2 21 0 R 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. /F1 20 0 R Never miss an insight. 4. /StructParents 6 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. Which tax provisions subsidize the cost of health care? >> Revenue generation in Nigeria local governments is principally derived from TAX. How do IRS audits affect low-income families? Predicting Municipal Fiscal Distress: Aspiration or Reality? >> >> HyTSwoc [5laQIBHADED2mtFOE.c}088GNg9w '0 Jb 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. However, the composition of tax revenue has changed somewhat. >> /Contents 67 0 R The State's own budgetary issues have put a major strain on local government budgets across Illinois. 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. /S /Transparency 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. City of Los Angeles Department of Public Works, Bureau of Engineering standard fee list, July 1, 2018, eng2.lacity.org. 14 0 obj /Tabs /S /F2 21 0 R /StructParents 2 There is no one route that cities can or should take to boost revenues. \~x2{w6HZpV1 ~eh5u*d*pn1gs9WzfY+W)hh,O`\`k}[rHyU ;18HXS-xep]#2 jAI740-+-=tk3zdSzn*Qv8tC>"mTv{ 4X[w*qQ*@TLHYF\MQZjxU^VQqy hiJdNVhP Mq:=oD5QyU!WwH^_/6+_Gwg_vSLVe` -WL=:@N>X9VfEhlfN~ <=-y3e,KQ!CH[jy^{eTuyt\p\)?rj;7K80r;@66Auu:fdYfJ LG8D6 %$5 0000002251 00000 n These cities typically adopt one of two archetypes: an independent revenue monetization department that focuses on commercial aspects and acts as a strategic unit for generating revenues, or a commercial unit integrated into the finance department that is responsible for tracking progress of revenue targets. or improve local service delivery, though the opposite can also be true. << 0000003592 00000 n 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 are the major options for comprehensive tax reform? /Pages 2 0 R The quest for development has for a long time been a very important stage in human life. 13 0 obj 92so74oi J. - 185.64.219.103. << A citizens guide to the fascinating (though often complex) elements of the US tax system. Three local government officials were also interviewed. 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. 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. In 2013, Seoul introduced a volume-based food waste disposal charge that succeeded in reducing its daily food waste significantly. 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). R[? << What did the American Taxpayer Relief Act of 2012 do? Diesel fuel used in processing, manufacturing, refining, generating electricity, irrigation or farming, or by any hospital may /Type /Page n /, another reform of local government #as, established. endstream <>stream endobj >> For example, revenue KPIs could include the annual increase in revenue per lever, while nonrevenue KPIs could define targets for each lever and its corresponding interventions, such as the annual increase in the number of violations detected. This charge generates more than $100 million in revenue each year. 4 0 obj /F1 20 0 R >> www.iiste.org. Cities should then establish a revenue committee that adopts a strategic perspective to assess the impact of revenue levers and understand the interlocking factors. /Meta55 44 0 R Given state and local tax revenuevolatility resulting from the COVID-19 pandemic, and the large amount of federal transfers approved by Congress, particularly as part of the American Rescue Plan, these numbers will probably look different for fiscal years 2020 and 2021, but Census has not yet published that data. /F7 26 0 R 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. << These factors often include volume of activity, location, and period of validity. What is the difference between carryover basis and a step-up in basis? In addition, elected officials must strike a tricky balance between raising taxes and fees and maintaining public support. International Business Management, 3(3), 5460. 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. How would small businesses be treated under a VAT? /Group << Longman. 1 0 obj Ola Ventures. 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. Who bears the burden of the corporate income tax? 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. % 2 0 obj How do taxes affect the economy in the short run? How does the tax exclusion for employer-sponsored health insurance work? What would and would not be taxed under a national retail sales tax? In 2020 and 2021, Congress transferred a large amount of funds to local governments as part of the CARES Act, the Coronavirus Response and Relief Supplemental Appropriations Act (part of the December 2020 omnibus bill), and the American Rescue Plan. <>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 13 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> What would and would not be taxed under a VAT? /F1 20 0 R share. /Group << /Type /Page For existing land lease contracts, cities could maximize value through renegotiation or cancellation and retender based on tenant response. 'ocal governments in, over a number of years. /Resources << The revenue generation is not exceptional to :muahia North, Do not sell or share my personal information. /Type /Page I. I. ntroduction 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. /MediaBox [0 0 595.32 842.04] How have the sources of revenue for state and local governments changed over time? Small businesses . /F1 20 0 R What criticisms are levied against standard distributional analysis? Norton Francis and Frank Sammartino (2015). 10 0 obj Cities should consider the following areas: Collectively, these assessments will help cities to produce a prioritized list of levers for implementation. In our experience, governments that pursue a practical approach to revenue generation can capture up to 50 percent of incremental revenues. /Tabs /S endobj Fix the home. /Resources << This need underscores the eagerness on the part of state and local governments and even the federal government to look for n3kGz=[==B0FX'+tG,}/Hh8mW2p[AiAN#8$X?AKHI{!7. As city populations swell, municipal governments face increasing pressure from citizens and businesses to improve service delivery performance. Most cities have yet to unlock the full potential of their existing revenue sources, let alone tap into new streams. /XObject << Principles of leadership. How accurate are long-run budget projections? /Resources << What are tax expenditures and how are they structured? . /Resources << What are tax credits and how do they differ from tax deductions? Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. How do financing methods affect the distributional analyses of tax cuts? The need for state and local governments to generate adequate revenue from internal sources has therefore become a matter of extreme urgency and importance. (All sources of local government general revenue do not sum to 100 percent because of rounding.). N')].uJr /F1 20 0 R 3. /Font << 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). Financial management in Nigerian local government. Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. Something went wrong. Eneanya, A. N. (2012). Agu (2010) examined the . endobj What is the breakdown of revenues among 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. Gordon, Tracy. 7, 192209. >> 2y.-;!KZ ^i"L0- @8(r;q7Ly&Qq4j|9 Cities could also revise their pricing models by using differentiating factors specific to each revenue lever. What have budget trends been over the short and long term? For example, cities could institute new charges for the disposal of food waste. 11. << However, the state government transfer total includes indirect federal funds that are initially allocated to states. /Image8 18 0 R /Type /Group /GS7 17 0 R endobj /S /Transparency >> What are the tax benefits of homeownership? University Press. Intergovernmental transfers accounted for 36 percent of local general revenue in 2017 (figure 1). International Journal of Economics, Commerce and Management, 3(6), pp. 2 0 obj /CS /DeviceRGB Create new revenue streams. Annual Survey of State and Local Government Finances. Who would qualify for return-free filing? With initial adjustments for relevance and size of potential revenue impact, cities can select the most promising streams as revenue generators. /Meta59 53 0 R /Parent 2 0 R Babcock University Press. /Image95 78 0 R Local governments collected $509 billion from property taxes in 2017, or 30 percent of local government general revenue. /StructParents 7 Other strategies, such as payment plans, can also reduce leakage and increase collections. Tax is however, a compulsory levy imposed by government on individuals and companies for various legitimate functions of the state (Olaoye, 2008). What is the difference between a tax-exclusive and tax-inclusive sales tax rate? The survey research design was adopted for this study, with 414 staff of Ikorodu local government area as the population of the study. 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