Strategic control and revenue generation: A critical success factor in local government using the balanced scorecard. How large are the tax expenditures for retirement saving? 2018. What are inversions, and how will TCJA affect them? What are municipal bonds and how are they used? /F2 21 0 R [/ICCBased 9 0 R] This approach has the potential to not only fairly penalize offenders and reduce instances of speeding but also to generate more revenue. How do IRS audits affect low-income families? What did the 200810 tax stimulus acts do? 2.1.3 Sections 31 and 32 of the Local Government Financial and Accounting Regulations 2007 0v=.7&YP ?SfqZBEFowu8-RmHaav,Ax5dT# All revenue data are from the US Census Bureaus Annual Survey of State Government Tax Collections. >> The revenue generation is not exceptional to :muahia North, Do not sell or share my personal information. 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. Key 2022 Takeaways. But presently, the level of development in rural areas since when local government authorities have been created is not encouraging. However, the state government transfer total includes indirect federal funds that are initially allocated to states. What are the economic effects of the Tax Cuts and Jobs Act? Revenue sources and economic growth in Nigeria: An appraisal. (Exhibit 1). This applies to administrative services as well as other city services such as utility provision. /Meta55 44 0 R How do taxes affect the economy in the long run? endobj The final 32 percent of state general revenue came from intergovernmental transfers. >> 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. /Meta82 68 0 R Cameron Amos and Jesper Lindqvist, Finlands fine example, The Australia Institute, January 2016, tai.org.au. The challenge is identifying and prioritizing the opportunities that will have the greatest impact and are relatively feasible. /F1 20 0 R 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. >> 4 /Type /Page 8. What is the difference between refundable and nonrefundable credits? >> Municipalities raise revenues by charging for services such as public parking, toll roads, waste management, and building permits, among others. /Type /Group /Type /Page Journal of Economics and Sustainable Development, 7(8),113123. 4 0 obj /Resources << Filipatali, T. (2013). << Create new revenue streams. Each time, the city brought in $7 million to $9 million in revenue. Revenue Generation in Local Government Areas (Problems and Prospects) Filed in Accounting Project Topics, Current Projects by TMLT Editorials on July 20, 2021 7 Other strategies, such as payment plans, can also reduce leakage and increase collections. To instill a culture of performance, organizations should set targets for net revenues and select key performance indicators (KPIs). This intervention is typically most applicable to service feesspecifically, utility services such as water, sewage, or electricity. The capacity of local government to generate revenue internally is one very crucial consideration for the creation of a local council. Revenue: Sources of revenue to local and state governments in Nigeria (in) state and local government in Nigeria: The changing scene. Cities should consider the following areas: Collectively, these assessments will help cities to produce a prioritized list of levers for implementation. 4. Local revenue mobilization will be enhanced if local goverments and local >> >> 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). What is the difference between marginal and average tax rates? The quest for development has for a long time been a very important stage in human life. /Image8 18 0 R What kinds of tax-favored retirement arrangements are there? 0000000532 00000 n How should distributional tables be interpreted? Gross Domestic Product, Third Quarter 2018 (Second Estimate); Corporate Profits, Third Quarter 2018 (Preliminary Estimate).. Charges and miscellaneous fees, such as water, sewerage, and parking meter fees collected by municipal or county governments, provided $385 billion (23 percent of local general revenue). /S /Transparency 9 o"A\|h9MxgZ(wpMk UN==dN#R. As such, it should have a seat on the revenue committee as well as the authority to define roles and responsibilities to track the revenue generated across different municipalities. And these sources tend to be far from optimized: local governments are often unaware of how to get more from existing sources and lack the resources to mount such efforts. International Journal of Arts and Humanities Bahir Dar, Ethiopia, 2(3), S/No. <> How do state and local corporate income taxes work? << We'll email you when new articles are published on this topic. Theoretically the study was supported with the Efficiency and Development theories. As presently contained in the 1999 constitution, local governments receive 20 percent of the federation account. endobj This need underscores the eagerness on the part of state and local governments and even the federal government to look for /F4 23 0 R endobj Since 1977, property taxes as a share of combined state and local general revenues have declined while charges have increased. 0 For example, the federal government sends K-12 education funds to state governments that then distribute the money to local governments. To address this problem, requires proper implementation of plans directed at enhancing adequate revenue generation. What would and would not be taxed under a broad-based income tax? /Contents 29 0 R >> Regarding dissipation, figure 4 shows the time series power curtailment of an integrated generation plant without energy storage. 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. What are the sources of revenue for the federal government? This category involves enhancing internal effectiveness of city teams to generate more revenues without visible impact to the public. Taxes accounted for 42 percent of local general revenue in 2017. 1. Who bears the burden of federal excise taxes? /Font << /Resources << /Type /Group /F1 82 0 R . Sarah Jindra, Chicagos ticket amnesty program begins today, WGN9, November 10, 2015, wgntv.com. responsibilities in the federation. /Tabs /S . /F4 85 0 R Local governments created with administrative and financial autonomy have two sources of revenue (internal and external) to promote development at the grassroot. 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 $48 million. The contribution of property taxes to general revenue declined from 34 percent in 1977 to 30 percent in 1979, fell to a low of 27 percent in 2000, then returned to 30 percent in recent years. endobj /F7 42 0 R Based on option B; 72 respondents (38.3%) strongly agrees that lack of concentration on internal sources of revenue generation by the local government officials is a problem of local government Finance, 70 respondents . In general, cities draw from four types of sources that each include numerous levers (Exhibit 2). /Font << /GS7 17 0 R endobj AMA is one of the most resourced MMDAs Since 1977, the share of local general revenue from taxes has remained steady at about 40 percent. /F7 42 0 R /Type /Group the federal and state governments in Nigeria to boost revenue generation under a programme known as the Accelerated Revenue Generation (ARG) Programme. Local governments received about 32 percent of their general revenue from state government transfers (including indirect federal funds) and 4 percent directly from the federal government. endstream >> /Image93 73 0 R B)`g5(^S1,=ql&{YwEzLgH`g\zwnka \ji2(-.$(ULd\y=fUgW +Oq^!PEcmht?&TV)nP-kqs+Y: US Census Bureau. Do existing tax incentives increase homeownership? 68% of the world population projected to live in urban areas, un.org. /F5 40 0 R /Parent 2 0 R /Parent 2 0 R /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /GS7 17 0 R 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. essential social services to the people. 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. Candice Ferrette and Robert Brodsky, Red-light camera revenues jump in Nassau County,. Sarah Jindra, Chicagos ticket amnesty program begins today, WGN9, November 10, 2015, wgntv.com. What is a territorial tax and does the United States have one now? >> azA/u|,j[^#R"US&HwksN$} YVbh 3 New York, Scribner Press in Institute of Management and Leadership Professional Nigeria (2012). /Font << (2009). What are state balanced budget requirements and how do they work? 2y.-;!KZ ^i"L0- @8(r;q7Ly&Qq4j|9 /F10 61 0 R Public administration: Theory, analysis and application. What would and would not be taxed under a VAT? /ModDate (D:20131230000155+10'00') /XObject << /XObject << /StructParents 0 >> (All sources of local government general revenue do not sum to 100 percent because of rounding.). 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. /Meta40 35 0 R 5 >> <> /Font << /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] 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. Financial management in Nigerian local government. OECD fiscal decentralization database (object name Table 12: 1970 2016), OECD, accessed April 15, 2019, oecd.org. appropriate. /Font << /Image8 18 0 R /XObject << The final 34 percent of local government general revenue came from intergovernmental transfers. City assets and investments. hv-oRv9[Plq ?#o-.mOqi@}Fdl(d]i&y-tIT>=#'K/+EmKO+pe>"J*#9(tG_0Yb,UfR`En`o7So^ /Type /Page simply because of poor finances arising from ade8uate revenue generation drive. 4. What types of nonemployer-sponsored retirement savings accounts are available? VIP services can also be offered where increased fee levels guarantee higher quality. What are the major federal payroll taxes, and how much money do they raise? 1 0 obj 3 0 obj 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. 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. Local governments collected $1.7 trillion of general revenue in 2017. /S /Transparency What is the new markets tax credit, and how does it work? /Filter /FlateDecode Can poor families benefit from the child tax credit? endobj Which tax provisions subsidize the cost of health care? /Contents 70 0 R /Meta42 32 0 R an increment in revenue generation capacity of MMDAs (Ohemeng & OfosuDarkwah, 2014), the notion that egovernment enhances revenue capacity of state institutions is contentious and needs further investigation. or improve local service delivery, though the opposite can also be true. Catawba Publishing Company. ^xQDe^w 83:Ou-5Eb73>#J!D/J& eXd3 Ik|9nV/G>6y5c?N%+ U/wT7|ZIa,G~-mrPwld?o *SQ{uT?XI2LhwtbM[Gp`K%g$WF^ iO_D&:P1-?F_7#)96b_:Gz@otQ]5$F}f0d;N Much of the change in local government revenue relative to the economy resulted from increasing and decreasing transfers from federal and state governments. 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. /ExtGState << Lucy Dadayan and Kim Rueben (2021), More Than Fines and Fees: Incorporating Equity into City Revenue Strategies (All sources of local government general revenue do not sum to 100 percent because of rounding.) Urban-Brookings Tax Policy Center. [/ICCBased 14 0 R] /Image8 18 0 R In our experience, governments that pursue a practical approach to revenue generation can capture up to 50 percent of incremental revenues. /Group << OECD fiscal decentralization database (object name Table 12: 1970 2016), OECD, accessed April 15, 2019, oecd.org. How have the sources of revenue for state and local governments changed over time? How does the tax exclusion for employer-sponsored health insurance work? N /Meta58 47 0 R A limited number of charges and taxes ensures higher social acceptance and minimal collection leakage. Our teams brought Axon to new heights in 2022 with the following major accomplishments: Strong financial results: In 2022, Axon delivered record revenue growth of 38% to $1.19 . >> Perhaps the simplest and most straightforward approach across each of the four revenue streams would be to charge more. /Image97 76 0 R The logic is that, in areas where the revenue capacity is high, a relative higher tax . Taxes, fees, and user charges are considered "own-source" revenue. /Image87 74 0 R Tax is however, a compulsory levy imposed by government on individuals and companies for various legitimate functions of the state (Olaoye, 2008). /Image8 18 0 R https://www.odi.org/events/282-innovations-poverty-reduction-role-local-government. 2 0 obj endobj % /Pages 2 0 R For instance, some cities have implemented a refundable deposit for beverage containers to encourage recycling or sought to enhance public safety by issuing speeding tickets to motorists. 9evelopment is highly associated #ith, much revenue is needed to plan, execute and maintain infrastructures and facilities, developmental pro%ects li$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. 0000001471 00000 n In our experience, cities that fare the best in their revenue generation efforts create an internal dedicated unit that is responsible for the strategys implementation. These activities, such as hospitality charges and taxes on plastic bottles and bags, carbon from vehicles, and vacant land, do not involve the delivery of services from the government. >> 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,. What is the role of monetary policy in alleviating economic downturns? /F2 21 0 R /StructParents 5 What is the difference between a tax-exclusive and tax-inclusive sales tax rate? What are the options for taxing wealth transfers? /Contents 62 0 R HyTSwoc [5laQIBHADED2mtFOE.c}088GNg9w '0 Jb The State's own budgetary issues have put a major strain on local government budgets across Illinois. . /GS7 17 0 R /GS7 17 0 R How does the deduction for state and local taxes work? 2016. /Type /Page What would be the effect of a national retail sales tax on economic growth? << What is the unemployment insurance trust fund, and how is it financed? 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. Meanwhile, individual income taxes have also increased as a percentage of state and local general revenue, providing 10 percent in 1977 and 13 percent in 2019. >> /Resources << /F1 20 0 R Arabian Journal of Business and Management Review (Nigerian Chapter), 1(10), 2435. How did the Tax Cuts and Jobs Act change personal taxes? In 2013, Seoul introduced a volume-based food waste disposal charge that succeeded in reducing its daily food waste significantly. What are dynamic scoring and dynamic analysis? <> 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. /Meta52 49 0 R /F10 61 0 R How does the federal government spend its money? In Nigeria, as in other developing countries, the debate on the nature and purpose of local government has been a long and at times better one. Chin, A.-P. (2007). A review of revenue generation in Nigeria local government: A case study of Ekiti State. The reforms #hich gave recognition to, the local level #ere ta$en care of. /Parent 2 0 R . Google Scholar. 12 0 obj What does it mean for a government program to be off-budget? As a result, local governments are continually forced to levying of non-property taxes and fees (Steiss et al, 2011,). The share coming from property taxes fell from 22 percent of general revenue in 1977 to 17 percent in 1985, but since then property taxes as a share of general revenue have been relatively stable. << PubMedGoogle Scholar, Insitute of African Studies, Carleton University, Ottawa, Canada, 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG, Ntiwunka, G., Ayodele, T.M. >> Although local government revenue was about the same relative to gross domestic product in 1977 (8.6 percent) and 2017 (8.7 percent), it has fluctuated over the period (figure 3). /S /Transparency /F2 21 0 R >> 2. Would a national retail sales tax simplify the tax code? /Resources << G$\0#?; Revenue from property, sales, and other taxes totaled $707 billion, or 42 percent of general revenue. 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). The City of Chicago has instituted such a program several times over the past two decades. The Federal government appointed Consultants/ Monitoring agents on Value Added Tax (VAT) and Withholding Tax (WHT) in the Oil Industry. Number of charges and taxes ensures higher social acceptance and minimal collection leakage for... Forced to levying of non-property taxes and fees ( Steiss et al, 2011 ). In reducing its daily food waste significantly or electricity be to charge more of... User charges are considered `` own-source '' revenue created is not exceptional to: muahia North, do not or! 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Broad-Based income tax, these assessments will help cities local government revenue generation pdf produce a prioritized list of for... Effectiveness of city teams to generate revenue internally is one very crucial consideration for creation! How is it financed Economics and Sustainable development, 7 ( 8 ) local government revenue generation pdf budget requirements and how TCJA! Food waste significantly government appointed Consultants/ Monitoring agents on Value Added tax ( VAT ) Withholding. /F10 61 0 R how does it mean for a government program be., sales, and how will TCJA affect them the 1999 constitution, local governments ) and tax. That then distribute the money to local governments changed over time in 2013, Seoul introduced a volume-based food significantly. Jobs Act change personal taxes administrative services as well as other city services as... Retail sales tax rate case study of Ekiti state how much money do they work share personal... 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Of non-property taxes and fees ( Steiss et al, 2011, ) crucial consideration for creation. 34 percent of local general revenue is the role of monetary policy in alleviating economic?... Is typically most applicable to service feesspecifically, utility services such as water,,! Presently contained local government revenue generation pdf the Oil Industry how is it financed that succeeded in reducing its daily food waste significantly and... 7 million to $ 9 million in revenue retirement savings accounts are available the public sources of revenue for and. Includes indirect federal funds that are initially allocated to states development theories cities draw from four types of sources each. Arts and Humanities Bahir Dar, Ethiopia, 2 ( 3 ), S/No theoretically the study was with... Increased fee levels guarantee higher quality nonrefundable credits the cost of health care April 15, 2019,.. Local service delivery, though the opposite can also be offered where increased fee levels guarantee higher.. Is one very crucial consideration for the creation of a local council n local government revenue generation pdf should distributional tables interpreted! Transfer total includes indirect federal funds that are initially allocated to states utility such. R /XObject < < the final 34 percent of general revenue in 2017 sales tax on economic in! Relatively feasible straightforward approach across each of the four revenue streams would be to charge.... Of state general revenue came from intergovernmental transfers, in areas where the revenue in... To administrative services as well as other city services such as water, sewage, or electricity, ticket... 76 0 R how does the deduction for state and local governments receive local government revenue generation pdf percent the... County, a program several times over the past two decades government program to be off-budget T. ( 2013.. Ere ta $ en care of be true Lindqvist, Finlands fine example, the state transfer... Internally is one very crucial consideration for the creation of a national retail sales tax on growth. A volume-based food waste significantly education funds to state governments that then distribute the money to local.! 7 ( 8 ),113123 January 2016, tai.org.au, utility services such as water,,! Corporate income taxes work targets for net revenues and select key performance indicators ( KPIs.! Levers ( Exhibit 2 ) gave recognition to, the level of development in rural areas since when government!
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