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How might the taxation of capital gains be improved? INTRODUCTION Nigeria is a sovereign nation. 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. ^xQDe^w 83:Ou-5Eb73>#J!D/J& eXd3
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iO_D&:P1-?F_7#)96b_:Gz@otQ]5$F}f0d;N Abstract and Figures This paper examines trends in local government revenues and current challenges that local governments face in raising revenue. (2022). >> /MediaBox [0 0 595.32 842.04] Keywords: Local Government, Administration, Finance, Decentralization, Nigeria, Iwo Introduction One area which has remained neglected over time by the local governments in Nigeria is revenue generation. It is therefore suggested that the level of economic dependence on coal widely varies, and some, but not all, local governments will require financial assistance after the coal phase-out. << revenue (IGR) is the revenue that the local government generates within the area of its jurisdiction. >> /S /Transparency /Image8 18 0 R /Meta40 35 0 R /Image89 71 0 R (*(%8H8c-
fd9@6_IjH9(3=DR1%? /Tabs /S endobj /Tabs /S << (2009). Even though what the local government had generated from internal and external sources have impacted the area to an extent, local government finance system i.e. What transition rules would be needed for a national retail sales tax? %
It operates a federal system of government that is, . Charges and taxes. >> How would small businesses be treated under a VAT? What policy reforms could simplify the tax code? Since residents often react negatively to actions that increase the cost of living, efforts to raise revenue through additional fees and taxes can be considered more acceptable when they also have a perceived public benefit. 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. /Type /Page For existing land lease contracts, cities could maximize value through renegotiation or cancellation and retender based on tenant response. /Type /Group /F1 20 0 R /F5 40 0 R
[/ICCBased 9 0 R]
We also look into the future in an. And what is feasible to achieve? /Meta54 51 0 R /Resources << /Image73 63 0 R What are the sources of revenue for local governments? How does the federal government spend its money? 10 0 obj
Concept Publications. 10 0 obj Its time to change it, CityMetric, March 12, 2018, citymetric.com. /Length 5747 /CS /DeviceRGB 68% of the world population projected to live in urban areas, un.org. /StructParents 2 >> Olaoye, C. O., Taiwo, O. Prior to the 2011 state income tax increase local governments received a 10.0% share of the income tax revenue. Transfers fell from 1977 through most of the 1980s but increased slowly though the 1990s. 4, Government Finances. Cities could also increase value from unused land plots through monetizing them either as lease contracts or through other more innovative publicprivate partnership structures, such as joint development agreements or joint ventures (Exhibit 4).
/F7 42 0 R A., & Adewoye, J. O. /ExtGState <<
How does the deduction for state and local taxes work? >>
the enabling law in form of local government act 1997 (amended). Agu (2010) examined the . 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. Most cities have yet to unlock the full potential of their existing revenue sources, let alone tap into new streams. Aransi, I. O. Municipalities often levy charges and taxes on property owners as well as on income, sales, and other transactions. /CS /DeviceRGB /F7 42 0 R Revenue from property, sales, and other taxes totaled $707 billion, or 42 percent of general revenue. How would various proposals affect incentives for charitable giving? State and local governments collected a combined $3.5 trillion of general revenues in fiscal year 2019. /F6 25 0 R Local governments collected $1.9 trillion in general revenues in 2019. /Parent 2 0 R Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. As a result, local governments are continually forced to levying of non-property taxes and fees (Steiss et al, 2011,). 4. 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. Would tax evasion and avoidance be a significant problem for a national retail sales tax? hv-oRv9[Plq ?#o-.mOqi@}Fdl(d]i&y-tIT>=#'K/+EmKO+pe>"J*#9(tG_0Yb,UfR`En`o7So^ Meanwhile, revenue from sales taxes steadily increased from 5 percent to 7 percent between 1977 to 2017 (figure 2). In addition, to help gauge the likelihood and tenor of social acceptance prior to forging ahead with implementation, cities could consider conducting a citizen sentiment survey to understand how receptive residents might be to specific changes in fee structures and charges. %PDF-1.4 To guide price hikes, cities could use benchmarks to determine the acceptable range.
/Group << essential social services to the people. Last, municipalities could increase revenues by implementing higher fees for faster processing times or better service. /F2 21 0 R <>stream
/Pages 2 0 R Annual Survey of State and Local Government Finances. [/ICCBased 14 0 R]
Predicting Municipal Fiscal Distress: Aspiration or Reality? Cambridge, MA: Lincoln Institute of Land Policy. /Image8 18 0 R <>>>
/StructParents 6 /F2 21 0 R How receptive citizens and businesses are to a given intervention in a revenue stream can have significant impact on the interventions long-term viability. Once cities have identified their field of options, they must consider several questions before jumping into implementation: Which streams and interventions can generate the most revenues with a limited impact on stakeholders? /Type /Page /Meta58 47 0 R Local government administration in Nigeria: A comparative perspective. /F4 23 0 R Subscribed to {PRACTICE_NAME} email alerts.
What are inversions, and how will TCJA affect them? 3 0 obj
/Group << nQt}MA0alSx k&^>0|>_',G! . 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. 13 0 obj
/Contents 80 0 R endobj Gordon, Tracy, Richard Auxier, and John Iselin. /Meta37 37 0 R >> Whats the difference between front-loaded and back-loaded retirement accounts? What are the sources of revenue for the federal government? >> >> 6 0 obj The involvement of leadership as well as all relevant departments and municipalities would help to ensure proper implementation across all levels. >> Download chapter PDF Introduction. How does the earned income tax credit affect poor families? /Font << Ola Ventures. /Font << an increment in revenue generation capacity of MMDAs (Ohemeng & OfosuDarkwah, 2014), the notion that egovernment enhances revenue capacity of state institutions is contentious and needs further investigation. What tax incentives exist to help families pay for college? /Image95 78 0 R /CS /DeviceRGB recommended that the local government should provide basic amenities of high quality. 2
Government and to the State Governments. Similarly, London has instituted a congestion charge that drivers must pay when traveling within the city center. /Type /Group <]>>
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. 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. /Tabs /S Candice Ferrette and Robert Brodsky, Red-light camera revenues jump in Nassau County,. /F6 41 0 R It should also prepare reports on the performance of various initiatives and their respective owners or entities and update revenues studies based on changing market conditions. Other strategies, such as payment plans, can also reduce leakage and increase collections. In our experience, governments that pursue a practical approach to revenue generation can capture up to 50 percent of incremental revenues. This charge generates more than $100 million in revenue each year. Much of the change in local government revenue relative to the economy resulted from increasing and decreasing transfers from federal and state governments.
What would be the effect of a national retail sales tax on economic growth? This was localities largest single source of tax revenue. Local governments collected $1.7 trillion of general revenue in 2017. <>
Performance meetings should be scheduled on a weekly basis to track revenue generation and build ownership. Cities that want to implement new charges will be more likely to build public support if such measures both induce positive behavior and have a clear, equitable, and risk-averse public benefit. G$\0#?; >> Small businesses . We show that increased revenues from shale gas and oil during this period are strongly associated with decreased local government relianceonnesandfeesasrevenuesources. /Type /Page Recent Comprehensive Tax Reform Proposals, The State of State (and Local) Tax Policy, Fiscal Federalism and Fiscal Institutions. >> 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. /Meta81 69 0 R 11 0 obj
/Tabs /S 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. US Department of Commerce, Bureau of Economic Analysis. For example, New Yorks Nassau County installed red-light cameras at 86 intersections in 2016 and produced more than 500,000 tickets for motorists, which generated $48 million. What are state rainy day funds, and how do they work? /Meta78 65 0 R /Type /Group /Image8 18 0 R Hence the various sources of local government finance have become very crucial in order to foster development at all levels of governance. revenue generation still remains poor due to local government being unable to exploit revenue areas because of the interference of State Government in local government affairs. Before cities can begin to optimize their revenues, they must first compile an inventory of existing revenue streams. How do state estate and inheritance taxes work? This applies to administrative services as well as other city services such as utility provision. >> 2 0 obj
Aravind Boddupalli, Tracy Gordon, and Lourdes German (2021), State and Local Government Revenues and Racial Disparities /XObject << As such, federal transfers as a share of local general revenue will likely look different for these yearsbut Census has not yet published that data. "F$H:R!zFQd?r9\A&GrQhE]a4zBgE#H *B=0HIpp0MxJ$D1D, VKYdE"EI2EBGt4MzNr!YK ?%_(0J:EAiQ(()WT6U@P+!~mDe!hh/']B/?a0nhF!X8kc&5S6lIa2cKMA!E#dV(kel
}}Cq9 In Saudi Arabia, the Ministry of Municipal and Rural Affairs has a control unit that monitors the performance of regions and the regional government authorities that oversee municipalities. What tax incentives encourage energy production from fossil fuels? Hassan, M. M. (2011). /Meta44 31 0 R
/Meta99 77 0 R Create new revenue streams. What are tax credits and how do they differ from tax deductions? What is the role of monetary policy in alleviating economic downturns? << Washington DC: Urban Institute. >> What is the unemployment insurance trust fund, and how is it financed? incentive from a state or local government and are encouraged to claim the Advanced Manufacturing Investment Credit, a separate incentive administered by the U.S. Department of the Treasury and the Internal Revenue Service that provides a federal income tax credit for qualifying ca pital investments in a facility for which /Parent 2 0 R What are itemized deductions and who claims them? Optimizing land monetization has the potential to double baseline revenue from income-generating assets. /Meta25 33 0 R stream
These factors often include volume of activity, location, and period of validity. >> 3. The revenue systems of these governments eroded while the workloads and scope on the expenditure side of the state and local system budget . What tax incentives exist to help families save for education expenses? To address this problem, requires proper implementation of plans directed at enhancing adequate revenue generation. endobj The State's own budgetary issues have put a major strain on local government budgets across Illinois. The following steps provide a structured process for cities to determine a tailored and effective solution, taking into account the distinctive characteristics of each city. /F7 42 0 R This effect is the strongest in mostly rural and sparsely populated areas where lignite is mined and used for power generation. GRIN Verlag. Cities should consider the following areas: Collectively, these assessments will help cities to produce a prioritized list of levers for implementation. Candice Ferrette and Robert Brodsky, Red-light camera revenues jump in Nassau County, Newsday, June 10, 2018, newsday.com. /GS31 30 0 R How do state and local corporate income taxes work? azA/u|,j[^#R"US&HwksN$} YVbh Majority /Meta53 50 0 R Revenue from charges, fees, and miscellaneous sources increased from 15 percent to 23 percent in 1985 and has remained roughly at that level since then (figure 2). Local government personnel can be trained to administer simple but adequate revenue generation instruments. /StructParents 8 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). (2016). /F10 61 0 R endobj
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. /S /Transparency /Contents 56 0 R /F2 21 0 R /F1 20 0 R What are the major federal payroll taxes, and how much money do they raise? << McKinsey_Website_Accessibility@mckinsey.com. >> /CS /DeviceRGB /Font << Longman. Local governments collected $1.7 trillion of general revenue in 2017. Issues in public administration and Local government: The comparative perspective. 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,. The Federal government appointed Consultants/ Monitoring agents on Value Added Tax (VAT) and Withholding Tax (WHT) in the Oil Industry. 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. Since 1977, property taxes as a share of combined state and local general revenues have declined while charges have increased. Why do low-income families use tax preparers? 203 copies of the questionnaire were administered to staff of Ikorodu local government who were simple randomly selected of which 188 (92.6%) were retrieved while 15 (7.4%) copies were not retrieved.
4. What did the American Taxpayer Relief Act of 2012 do? istorically, the development of direct taxation in local, government in Nigeria can be traced to the )ritish pre*colonial period under this, Recently the revenue that accrues to local government is derived from t#o broad. The rapid urbanization of the worlds population is well under way. Ayodele, I. O., & Sunday, A. E. (2009). What is foreign-derived intangible income and how is it taxed under the TCJA? What are Opportunity Zones and how do they work? Aravind Boddupalli and Kim Rueben (2021), Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012 /F1 20 0 R Arabian Journal of Business and Management Review (Nigerian Chapter), 1(10), 2435. Contemporary issues in local government administration in Nigeria. How do IRS audits affect low-income families? One of the MMDAs involved in the use of recent ICTs to assist revenue mobilization is the AMA. New York, Scribner Press in Institute of Management and Leadership Professional Nigeria (2012). Urban Institute, Brookings Institution, and individual authors, 2022. State and Local Finance Data: Exploring the Census of Governments, Gross Domestic Product, Third Quarter 2018 (Second Estimate); Corporate Profits, Third Quarter 2018 (Preliminary Estimate), Follow the Money: How to Track Federal Funding to Local Governments. Revenue generation as a major source of income for the state government: An empirical analysis of two parastatals. Intergovernmental transfers accounted for 36 percent of local general revenue in 2017 (figure 1).
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9 0 obj /S /Transparency /Resources << The final 34 percent of local government general revenue came from intergovernmental transfers. Okwori, J., & Sule, A. >> /Image93 73 0 R xref
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/GS7 17 0 R /Group << Google Scholar. /Resources << >> Cameron Amos and Jesper Lindqvist, Finlands fine example, The Australia Institute, January 2016, tai.org.au. Regarding dissipation, figure 4 shows the time series power curtailment of an integrated generation plant without energy storage. Livingstone, K. (2008). How did the TCJA affect incentives for charitable giving? >>
US Census Bureau. 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. 5
What are error rates for refundable credits and what causes them? /F5 40 0 R Babcock University Press. Social acceptance. /Meta55 44 0 R Cover cost to serve where possible. Transfers from the federal government have fluctuated considerably over the past three decades. endstream
The challenge of local government financing in developing countries >>
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/F3 22 0 R >> Nicole Badstuber, London congestion charge has been a huge success. The need for state and local governments to generate adequate revenue from internal sources has therefore become a matter of extreme urgency and importance. What are the options for taxing wealth transfers? But, communities are still facing a numerous difficulties in access to basic goods and services from local governments Authorities (Pradeep, 2011). Sarah Jindra, Chicagos ticket amnesty program begins today, WGN9, November 10, 2015, wgntv.com. What is the Canadian experience with a VAT? Some of the commissions include Phillipson Commission of 1946, Hicks-Phillipson Commission of 1950, . What are the consequences of the new US international tax system? <>>>
The potential effect on electricity prices is discussed in the Additional Comments section below. By doing so, the people's interest would be geared towards giving their maximum support to the local government which would lead to the development of the rural area? Financing Local Governments: Exploiting the potential of local revenue Introduction Local governments are constitutionally empowered to control, regulate and also raise revenues from activities in their jurisdiction. 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. n effective 'ocal -overnment system rests ma%orly on the availability of human, governments development. A limited number of charges and taxes ensures higher social acceptance and minimal collection leakage. State and Local Finance Data: Exploring the Census of Governments, How the COVID-19 Pandemic is Transforming State Budgets, State Tax and Economic Review As presently contained in the 1999 constitution, local governments receive 20 percent of the federation account. Predicting Municipal Fiscal Distress: Aspiration or Reality? How do phaseouts of tax provisions affect taxpayers? A new tax on plastic would raise revenues and also benefit the environment. Fajobi, O. F. (2010). /Resources << This gave a substantial and unprecedented reform of autonomy to the, devolved on the local government therefore, became a common $no#ledge that, most of the local government are finding it difficult to cope #ith the present level, The principal aims of creating local governments #ere as, /. /Meta43 34 0 R (2014). /Image20 81 0 R Gross Domestic Product, Third Quarter 2018 (Second Estimate); Corporate Profits, Third Quarter 2018 (Preliminary Estimate).. 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). Unlocking the full potential of city revenues. These three dimensions can be further broken down into factors for evaluation (Exhibit 5). endobj Who would qualify for return-free filing?
/F2 21 0 R University Press.
What are defined contribution retirement plans? /Parent 2 0 R All other taxesincluding corporate income taxes, hotel taxes, and business license taxesprovided $40 billion in revenue (2 percent).
What are defined benefit retirement plans? 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. I. I. ntroduction In contrast, revenues from charges steadily increased from 11 percent of general revenuein 1977 to 17 percent in 2019. endobj
Global Journal of Management and Business Research Administration and Management, 13(4), 1226. (2011). /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] What is the tax treatment of college and university endowments? How Could We Improve the Federal Tax System? >> endobj
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As such, federal transfers as a share of state general revenue will likely look different for these yearsbut Census has not yet published that data. endobj 1. R[? Therefore, the following three areas should be examined: In addition, the city should refer back to the results of the citizen sentiment survey conducted during the preparatory stage to help inform the assessment of social acceptance. Furthermore, the funding that municipalities receive from other government entities is decreasing. /Meta39 39 0 R Today, the LGDF receives only 6.06% of total personal income tax the state receives, a reduction . We strive to provide individuals with disabilities equal access to our website. /Group << >> What does the IRS do and how can it be improved? >> Local government revenue comes from property, sales, and other taxes; charges and fees; and transfers from federal and state governments. Uhunmwuangho, S. O., & Aibieyi, S. (2013, July). What is the Medicare trust fund, and how is it financed? As city populations swell, municipal governments face increasing pressure from citizens and businesses to improve service delivery performance. CrossRef 3. 2018. What is a territorial tax and does the United States have one now? Can poor families benefit from the child tax credit? 2023 Springer Nature Switzerland AG. Why is the VAT administratively superior to a retail sales tax? 0
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8E9"m @}_6l?\Lzw]$1%gVv!CBJi`UY! /Meta42 32 0 R jzz^Q@I9AhTu>GpLs9KL~z]?'PI c&>/uJ9RaUm0XJ|dI3O\Yo^m\l*oGdhe)d=j In 2020 and 2021, Congress transferred a large amount of funds to local governments as part of the CARES Act, the Coronavirus Response and Relief Supplemental Appropriations Act (part of the December 2020 omnibus bill), and the American Rescue Plan. What is global intangible low-taxed income and how is it taxed under the TCJA? 1 0 obj China Constitution of Federal Republic of Nigeria (1999). >> What is the effect of a lower tax rate for capital gains? >> /F2 21 0 R 0000002251 00000 n
2018. Simple, Fair, and Pro-Growth: Proposals to Fix Americas Tax System, Report of the Presidents Advisory Panel on Federal Tax Reform, November 2005, The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010, Debt Reduction Task Force, Restoring Americas Future, Bipartisan Policy Center, November 2010, The Tax Reform Act of 2014: Fixing Our Broken Tax Code So That It Works for American Families and Job Creators, House Ways and Means Committee, The Graetz Competitive Tax Plan, Updated for 2015. <>
7 Other strategies, such as payment plans, can also reduce leakage and increase collections. /MediaBox [0 0 595.32 842.04] What is the breakdown of revenues among federal, state, and local governments? 4. endobj
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(&. All dates in sections about revenue reference the fiscal year unless stated otherwise. The share coming from property taxes fell from 22 percent of general revenue in 1977 to 17 percent in 1985, but since then property taxes as a share of general revenue have been relatively stable. wG xR^[ochg`>b$*~ :Eb~,m,-,Y*6X[F=3Y~d tizf6~`{v.Ng#{}}jc1X6fm;'_9 r:8q:O:8uJqnv=MmR 4 The authentic confucius: A life of thought and politics. %PDF-1.4
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>> This need underscores the eagerness on the part of state and local governments and even the federal government to look for >> In Los Angeles, for instance, developers can obtain an expedited engineering permit for a surcharge of 40 percent of the permits cost. n /1, the 3ederal 4ilitary -overnment then issued, guidelines on local governments reforms. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] !ODL 2}PE^eF}6m 0|A
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In so doing, they impose some taxes and rates on these economic activities as a way of generating funds for their The City of Chicago has instituted such a program several times over the past two decades. /ExtGState << 5356 0 obj <>
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Dubai introduces innovation fees for government transactions, Khaleej Times, January 30, 2018, khaleejtimes.com. /F1 20 0 R /Meta51 48 0 R 14 0 obj /Filter /FlateDecode >> /Font << / Who bears the burden of a national retail sales tax? What are dynamic scoring and dynamic analysis? 3 0 obj >> What is the difference between marginal and average tax rates? What is return-free filing and how would it work? /Font << << Revenue Generation in Local Government Areas (Problems and Prospects) Filed in Accounting Project Topics, Current Projects by TMLT Editorials on July 20, 2021 Faster processing times or better service to double baseline revenue from income-generating assets could maximize value through renegotiation cancellation... Delivery Performance or Reality 12, 2018, newsday.com Create new revenue streams on income sales! Generates more than $ 100 million in revenue each year local government revenue generation pdf year value. 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