Chapter One of Revenue Generation in Local Government Areas (Problems and Prospects) INTRODUCTION: BACKGROUND OF THE STUDY: Nigeria has three- tiers of government systems, These are; (i) The federal government (ii) The state government and (iii) The local government. Journal of Economics and Sustainable Development, 7(8),113123. /F10 61 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. /Meta37 37 0 R 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? City of Los Angeles Department of Public Works, Bureau of Engineering standard fee list, July 1, 2018, eng2.lacity.org. 2. <> As an alternative to benchmarking, cities could also determine the cost of services and then establish a cost-plus pricing model to generate additional revenues. Furthermore, technological advancements can aid increased surveillance. 15 0 obj /GS7 17 0 R /Type /Page \\jG*"ktVJE /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] <> Local revenue mobilization will be enhanced if local goverments and local How would small businesses be treated under a VAT? /F5 40 0 R /Meta41 36 0 R Cover cost to serve where possible. This effect is the strongest in mostly rural and sparsely populated areas where lignite is mined and used for power generation. /Annots [27 0 R 28 0 R] >> general sales taxes and gross receipts taxes, Coronavirus Response and Relief Supplemental Appropriations Act, federal funds for local transportation projects, Surveying State Leaders on the State of State Taxes, More Than Fines and Fees: Incorporating Equity into City Revenue Strategies, State and Local Government Revenues and Racial Disparities, Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012, Governing with Tight Budgets; Long Term Trends in State Finances, Center on Labor, Human Services, and Population, Metropolitan Housing and Communities Policy Center, 8 percent from selective sales taxes on purchases such as, 2 percent from selective sales taxes on purchases such as, 3 percent from other taxes such as a locality'staxes onhotel bookingsandrestaurant meals. /Parent 2 0 R /Meta52 49 0 R Cities use fines as both a deterrent for behavior at odds with the public goodfor example, the accumulation and nondisposal of garbage or building construction without a temporary fenceand a revenue source. /F5 40 0 R /StructParents 0 Fix the home. What are the sources of revenue for state governments? Who bears the burden of a national retail sales tax? 0 or improve local service delivery, though the opposite can also be true. endobj To address this problem, requires proper implementation of plans directed at enhancing adequate revenue generation. State and local governments collected a combined $3.5 trillion of general revenues in fiscal year 2019. 12 0 obj The quest for development has for a long time been a very important stage in human life. What are defined benefit retirement plans? Revenue sources and economic growth in Nigeria: An appraisal. Ola Ventures. <>/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>> /Image20 81 0 R What are inversions, and how will TCJA affect them? 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? 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. 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 A limited number of charges and taxes ensures higher social acceptance and minimal collection leakage. /Font << How have the sources of revenue for state and local governments changed over time? How did the TCJA affect tax expenditures? !ODL 2}PE^eF}6m 0|A h%D|k[ /F5 40 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. /Group << %%EOF Keywords : development, projects, revenue, generation, government. /S /Transparency What are the major federal payroll taxes, and how much money do they raise? << /Meta99 77 0 R >> /F7 26 0 R Three local government officials were also interviewed. << How do US corporate income tax rates and revenues compare with other countries? /Font << (All sources of local government general revenue do not sum to 100 percent because of rounding.) endobj A review of revenue generation in Nigeria local government: A case study of Ekiti State. In Finland, for example, fines for speeding are broadly linked to the income of violators and how far over the speed limit they were traveling when caught. 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. Cities should then establish a revenue committee that adopts a strategic perspective to assess the impact of revenue levers and understand the interlocking factors. /GS31 30 0 R 0000002023 00000 n Transfers from the federal government have fluctuated considerably over the past three decades. Global Journal of Management and Business Research Administration and Management, 13(4), 1226. How do state and local severance taxes work? /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] What are Roth individual retirement accounts? /ExtGState << 0000003348 00000 n stream Catawba Publishing Company. X-ray of Local government administration in Nigeria. Most cities have yet to unlock the full potential of their existing revenue sources, let alone tap into new streams. 11 0 obj We have found that this effort has led to a year-over-year increase in municipal revenues of 30 percent. What is the tax treatment of charitable contributions? Miscellaneous sources, such as special assessments, provided 7 percent of state general revenue. /F1 20 0 R /XObject << What tax incentives exist for higher education? 3 Uhunmwuangho, S. O., & Aibieyi, S. (2013, July). What is the schedule for the federal budget process? Revenue Generation in Local Government Areas (Problems and Prospects) Filed in Accounting Project Topics, Current Projects by TMLT Editorials on July 20, 2021 Lucy Dadayan (reports are updated quarterly), Surveying State Leaders on the State of State Taxes The revenue generation is not exceptional to :muahia North, Do not sell or share my personal information. /StructParents 4 Within this larger context, the ability of local governments to successfully and sustainably use revenue powers depends on an appropriate multi-dimensional constitutional/legal/ administrative framework. 7, 192209. What are the major federal excise taxes, and how much money do they raise? In: Oloruntoba, S.O. /Type /Group Aravind Boddupalli and Kim Rueben (2021), Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012 =s`Eu00Fu@dH*e&PtD\ \ v B#L2]\m /S /Transparency This category involves enhancing internal effectiveness of city teams to generate more revenues without visible impact to the public. 971z B)`g5(^S1,=ql&{YwEzLgH`g\zwnka \ji2(-.$(ULd\y=fUgW +Oq^!PEcmht?&TV)nP-kqs+Y: What tax incentives encourage alternatives to fossil fuels? 4 0 obj /Image8 18 0 R Key 2022 Takeaways. 10. %PDF-1.4 << 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. Maintaining public support is critical to the longer-term viability of such efforts, and cities must create an attractive business climate. 92so74oi J. endobj Todaro, M. P. (2015). As a result, local governments are continually forced to levying of non-property taxes and fees (Steiss et al, 2011,). /Type /Page /Font << What would the tax rate be under a broad-based income tax? (2016). 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. %(zC]N"t~'ewd+*a[`.dP(wz)Vio+qjXvVmWHS%n}"GC3m*.#w+.T#p1f^HgC`|Mzcs,JX8/v>na,4t^}$$\X S:ds0{ws:yGu.%;x/\)F@!>od1v((EF|' endobj Gross Domestic Product, Third Quarter 2018 (Second Estimate); Corporate Profits, Third Quarter 2018 (Preliminary Estimate).. These factors often include volume of activity, location, and period of validity. >> Revenue from property, sales, and other taxes totaled $707 billion, or 42 percent of general revenue. It is as easy to achieve fiscal decentralization under a unitary system of government as under a federal system. How might the taxation of capital gains be improved? Impact on economy. /Parent 2 0 R >> /Type /Page 4 0 obj 5/27/2020. What are the sources of revenue for local governments? /Contents 43 0 R What is the new markets tax credit, and how does it work? Governments, with input from citizens, must decide how to manage risks For example, the federal government sends K-12 education funds to state governments that then distribute the money to local governments. / endobj 13 0 obj How large are the tax expenditures for retirement saving? For cities and counties, property tax revenue makes up 61% of own-source tax revenuerevenue from taxes the local government leviesby far their largest tax source. 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