6. /Type /Group /Font << The challenge is identifying and prioritizing the opportunities that will have the greatest impact and are relatively feasible. 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. >> Through leases, joint ventures, and joint development agreements, municipalities can generate additional income. These factors often include volume of activity, location, and period of validity. Cities can also raise revenues by increasing the number of transactions through various approaches. Palgrave Macmillan, Cham. /Contents 62 0 R 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. 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. /Image8 18 0 R However, the composition of tax revenue has changed somewhat. How do financing methods affect the distributional analyses of tax cuts? What types of federal grants are made to state and local governments and how do they work? Department of Political Science and Public Administration, PMB 4010, Babcock University, Ilishan-Remo, Ogun, Nigeria, You can also search for this author in /Image8 18 0 R The principal aims of creating local governments were as follows: 1. Introduce innovative fees and charges. Something went wrong. 14 0 obj 13 0 obj How do taxes affect the economy in the short run? 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. /Im2 19 0 R INTRODUCTION Nigeria is a sovereign nation. www.iiste.org. /StructParents 4 8 0 obj /Type /Group appropriate. 9 o"A\|h9MxgZ(wpMk UN==dN#R. As a local government leader, you're pressed to keep up with the immediate needs of your community during the COVID-19 crisis. Hb``$WR~|@T#2S/`M. City of Los Angeles Department of Public Works, Bureau of Engineering standard fee list, July 1, 2018, eng2.lacity.org. /StructParents 7 /ExtGState << 0 % Tax is however, a compulsory levy imposed by government on individuals and companies for various legitimate functions of the state (Olaoye, 2008). We strive to provide individuals with disabilities equal access to our website. On the other hand, if the state collects a tax imposed by local governments, the collection and distribution to the imposing local governments is treated as an agency transaction; that is, the receipts are reported entirely as tax revenue of the local governments and not as either a state tax or state intergovernmental expenditure. Transfers from the federal government have fluctuated considerably over the past three decades. ZY,$85Y4$4p8 xGYX4238. /Type /Group >> /XObject << What would and would not be taxed under a national retail sales tax? endobj endobj Local governments include county governments, municipalities, townships, special districts (such as water and sewage authorities), and school districts. This need underscores the eagerness on the part of state and local governments and even the federal government to look for Beyond central government funding, the primary revenue streams for municipal governments are service fees, fines, taxes, and assets such as buildings and properties. Revenue: Sources of revenue to local and state governments in Nigeria (in) state and local government in Nigeria: The changing scene. simply because of poor finances arising from ade8uate revenue generation drive. Elected officials have four primary revenue sources, each containing multiple levers. 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? 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. Meanwhile, housing-program transfers are about 40 percent of federal transfers to local governments. /F7 42 0 R /Type /Group Ayodele, I. O., & Sunday, A. E. (2009). What was the experience with return-free filing in California? What are health reimbursement arrangements and how do they work? Subscribed to {PRACTICE_NAME} email alerts. Its time to change it, CityMetric, March 12, 2018, citymetric.com. 7 0 obj How do state and local severance taxes work? What is return-free filing and how would it work? Impact on economy. /MediaBox [0 0 595.32 841.92] /F7 42 0 R Before cities can begin to optimize their revenues, they must first compile an inventory of existing revenue streams. Meanwhile, revenue from sales taxes steadily increased from 5 percent to 7 percent between 1977 to 2017 (figure 2). 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). /Type /Group 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. Why do low-income families use tax preparers? /F1 20 0 R Two Decades in Effect: Volume-Based Waste Fee System in South Korea, Ministry of Environment, South Korea, January 2016. 2y.-;!KZ ^i"L0- @8(r;q7Ly&Qq4j|9 Local government personnel can be trained to administer simple but adequate revenue generation instruments. 5356 11 Local governments collected $1.9 trillion in general revenues in 2019. . But presently, the level of development in rural areas since when local government authorities have been created is not encouraging. In the last 10 years, Illinois has reduced the portion of income tax returned to cities and towns. How did the TCJA change the standard deduction and itemized deductions? Do existing tax incentives increase homeownership? Agu (2010) examined the . For instance, some cities have implemented a refundable deposit for beverage containers to encourage recycling or sought to enhance public safety by issuing speeding tickets to motorists. Aransi, I. O. Miscellaneous sources, such as special assessments, provided 7 percent of state general revenue. The share coming from property taxes fell from 22 percent of general revenue in 1977 to 17 percent in 1985, but since then property taxes as a share of general revenue have been relatively stable. These meetings serve as a way to monitor progress and enable proper implementation. In 2019, transfers from the federal government provided 22 percent of combined state and local general revenues. Local government administration in Nigeria: A comparative perspective. Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. /Type /Group All dates in sections about revenue reference the fiscal year unless stated otherwise. How does the availability of tax-favored retirement saving affect national saving? /F2 21 0 R endobj Edogbanya, A., & Sule, J. G. (2013). What is the Medicare trust fund, and how is it financed? /Type /Page D$IOS|O+kJp> It is very important especially for developing countries because in developing . /Resources << Performance meetings should be scheduled on a weekly basis to track revenue generation and build ownership. 10 0 obj /F2 21 0 R /Meta59 53 0 R endobj The Political Economy of Colonialism and Nation-Building in Nigeria pp 325343Cite as. B)`g5(^S1,=ql&{YwEzLgH`g\zwnka \ji2(-.$(ULd\y=fUgW +Oq^!PEcmht?&TV)nP-kqs+Y: 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. << n effective 'ocal -overnment system rests ma%orly on the availability of human, governments development. Municipalities raise revenues by charging for services such as public parking, toll roads, waste management, and building permits, among others. endobj State and Local Finance Data: Exploring the Census of Governments, How the COVID-19 Pandemic is Transforming State Budgets, State Tax and Economic Review >> /Contents 43 0 R 'ocal governments in, over a number of years. Would a national retail sales tax simplify the tax code? In Los Angeles, for instance, developers can obtain an expedited engineering permit for a surcharge of 40 percent of the permits cost. Despite the numerous options available to generate more funding for city operations, elected officials must proceed carefully. City assets and investments. /CS /DeviceRGB Small businesses . What tax incentives exist to help families save for education expenses? What types of nonemployer-sponsored retirement savings accounts are available? How does the current system of international taxation work? What are state rainy day funds, and how do they work? /Parent 2 0 R The revenue generation is not exceptional to :muahia North, Do not sell or share my personal information. 5356 0 obj <> endobj >> /Meta82 68 0 R 4. State and Local Finance Data: Exploring the Census of Governments. What is the schedule for the federal budget process? >> We also look into the future in an. . In addition, elected officials must strike a tricky balance between raising taxes and fees and maintaining public support. /Group << In so doing, they impose some taxes and rates on these economic activities as a way of generating funds for their 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. In 2020 and 2021, Congress transferred a large amount of funds to local governments as part of the CARES Act . . /Resources << The City of Chicago has instituted such a program several times over the past two decades. How did the TCJA change taxes of families with children? /StructParents 0 What are the major options for comprehensive tax reform? Urban Institute, Brookings Institution, and individual authors, 2022. All major sources of revenue have grown in real dollars since 1977, with charges seeing the largest increase in percentage terms ($132 billion in 1977 to $575billion in 2019, or a 337 percent increase) and transfers seeing the largest increase in total dollars ($263 billion in 1977 to $762 billion in 2019, or a 189 percent increase). <>stream Regarding dissipation, figure 4 shows the time series power curtailment of an integrated generation plant without energy storage. /Image91 75 0 R In Finland, for example, fines for speeding are broadly linked to the income of violators and how far over the speed limit they were traveling when caught. (&. /Resources << 9evelopment is highly associated #ith, much revenue is needed to plan, execute and maintain infrastructures and facilities, developmental pro%ects li$e construction of accessible roads, building of public, schools, health care centers, construction of bridges among others are sources, generated from taxes, royalties, haulages, fines and, international governments. What is the difference between marginal and average tax rates? 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. 11 0 obj Annual Survey of State and Local Government Finances. /Meta41 36 0 R /Group << /F5 40 0 R /Length 5747 New York, Scribner Press in Institute of Management and Leadership Professional Nigeria (2012). What is carried interest, and how is it taxed? << >> endobj >> This intervention includes expanding the sheer quantity of service offerings and assets, extending charges to a larger user base, or increasing the frequency of surveillance and inspection for selected fine sources to maximize detection of violations. 0000000532 00000 n /F10 61 0 R >> (eds) The Political Economy of Colonialism and Nation-Building in Nigeria. /F3 84 0 R 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). 8. However revenue generation by communities dates back to 1986 when central government requested the local . 1. /StructParents 2 N')].uJr 3 0 obj Cities should then establish a revenue committee that adopts a strategic perspective to assess the impact of revenue levers and understand the interlocking factors. The potential effect on electricity prices is discussed in the Additional Comments section below. 2016. /Image85 72 0 R n3kGz=[==B0FX'+tG,}/Hh8mW2p[AiAN#8$X?AKHI{!7. 4 /Tabs /S /Image89 71 0 R /MediaBox [0 0 595.32 842.04] >> xZs8hI6mzumvwn:ul7 z?0{v8,Vjq.W?_/NOfSXbyqhu0r}z2/6r>YmM%`@NUOv- endobj endobj /F3 22 0 R How do state and local property taxes work? Cities should consider the following areas: Collectively, these assessments will help cities to produce a prioritized list of levers for implementation. /Resources << Uhunmwuangho, S. O., & Aibieyi, S. (2013, July). 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. 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. 3 0 obj All other taxesincluding corporate income taxes, hotel taxes, and business license taxesprovided $40 billion in revenue (2 percent). =s`Eu00Fu@dH*e&PtD\ \ v B#L2]\m << 12 0 obj << Prior to the 2011 state income tax increase local governments received a 10.0% share of the income tax revenue. Who bears the burden of a national retail sales tax? How do flexible spending accounts for health care expenses work? . /StructParents 8 /Type /Page 3.16.1 Introduction. Strategic control and revenue generation: A critical success factor in local government using the balanced scorecard. How does the tax exclusion for employer-sponsored health insurance work? This intervention is typically applicable to any paper-based transactions or services, such as business license fees, construction permit fees, or land registration fees. Following the clear identification of interventions and opportunities, cities can set priorities based on social acceptance, economic impact, and ease of implementation. How receptive citizens and businesses are to a given intervention in a revenue stream can have significant impact on the interventions long-term viability. wG xR^[ochg`>b$*~ :Eb~,m,-,Y*6X[F=3Y~d tizf6~`{v.Ng#{}}jc1X6fm;'_9 r:8q:O:8uJqnv=MmR 4 /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] /S /Transparency /Meta37 37 0 R In 2013, Seoul introduced a volume-based food waste disposal charge that succeeded in reducing its daily food waste significantly. 7 Other strategies, such as payment plans, can also reduce leakage and increase collections. /Filter /FlateDecode state and local government with a recommendation that conscious effort be made to allocate more revenues to states and local governments. /XObject << /Image8 18 0 R A new tax on plastic would raise revenues and also benefit the environment. 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. /Contents 80 0 R /F1 20 0 R /Type /Group /Meta38 38 0 R /CS /DeviceRGB D?M5j$3X,/L )o-@ci"wAB%O3FQO ~3(,*Y| ?3efuj 6 6+?j|yDVQvKxzV. >Pu*wH:97CWW 3. What are inversions, and how will TCJA affect them? /Parent 2 0 R endobj /Count 10 /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] A simulation of 8,760 h year-round was performed for the provincial market containing the integrated generation plant without energy storage. What are defined benefit retirement plans? /Font << /Resources << /F4 23 0 R endobj /Parent 2 0 R Innovation is poverty reduction: The role of local government. , Congress transferred a large amount of funds to local governments countries because in.. Permits cost tax returned to cities and towns, 2018, citymetric.com the challenge is identifying and prioritizing opportunities. 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local government revenue generation pdf