0000003592 00000 n What would and would not be taxed under a national retail sales tax? /Meta53 50 0 R >> /F5 40 0 R >> As a local government leader, you're pressed to keep up with the immediate needs of your community during the COVID-19 crisis. 1. 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. INTRODUCTION Nigeria is a sovereign nation. 9 >> /Tabs /S n3kGz=[==B0FX'+tG,}/Hh8mW2p[AiAN#8$X?AKHI{!7. Performance meetings should be scheduled on a weekly basis to track revenue generation and build ownership. Since 1977, the share of local general revenue from taxes has remained steady at about 40 percent. What are state rainy day funds, and how do they work? . <>/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>> How do IRS audits affect low-income families? 2 0 obj 9 0 obj 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. The State's own budgetary issues have put a major strain on local government budgets across Illinois. How receptive citizens and businesses are to a given intervention in a revenue stream can have significant impact on the interventions long-term viability. x]s63|:oNg$8Sw}hKM7?.~Vb@g6v|Y,j]w2_~yv6IDltsLDI%:nCSq251Le,qGO2-y5E 6X6> iq#"K%J3#GfF/_F ?V]pq^Te%&zuD`~>EgFY3c87Hlt9@)Ov?"c" @]TLlJaZg=40P//^E5uTxR4nhs7=pOCezQ&6.6+`,^M:|"T|m|'wo'Sc^e~abN77`& 8E9"m @}_6l?\Lzw]$1%gVv!CBJi`UY! However, the composition of tax revenue has changed somewhat. For existing land lease contracts, cities could maximize value through renegotiation or cancellation and retender based on tenant response. 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. /Type /Group ZY,$85Y4$4p8 xGYX4238. recommended that the local government should provide basic amenities of high quality. This can be accomplished through moves that wont adversely affect public opinion or a citys competitiveness in attracting businesses and economic development. 3. )U!$5X3/9 ($5j%V*'&*r" (,!!0b;C2( I8/ Given state and local tax revenuevolatility resulting from the COVID-19 pandemic, and the large amount of federal transfers approved by Congress, particularly as part of the American Rescue Plan, these numbers will probably look different for fiscal years 2020 and 2021, but Census has not yet published that data. <> 8 Municipalities could increase service fees (such as those on parking and construction permits) as well as fines, taxes, and the cost of accessing city assets (such as beaches). Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. Washington DC: Urban Institute. D$IOS|O+kJp> How do financing methods affect the distributional analyses of tax cuts? What is the new markets tax credit, and how does it work? 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. 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. 2018. /StructParents 0 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. /GS31 30 0 R /S /Transparency 7 0 obj stream 6 /F4 23 0 R 1 0 obj (2014). >> /F6 41 0 R /Font << /Resources << What are the sources of revenue for the federal government? /XObject << 3 /Image8 18 0 R Local government personnel can be trained to administer simple but adequate revenue generation instruments. 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. Cities should then establish a revenue committee that adopts a strategic perspective to assess the impact of revenue levers and understand the interlocking factors. out of variations from the revenue generation capacities of component units. >> The principal aims of creating local governments were as follows: 1. What are state balanced budget requirements and how do they work? What are the options for taxing wealth transfers? 8 0 obj 14 0 obj What are municipal bonds and how are they used? Who would qualify for return-free filing? #$ e-`w6w As a result of these twin trends, a majority of the municipalities around the world are struggling to increase revenues while facing structural budget shortfalls that threaten service delivery and quality. /Meta65 57 0 R We show that increased revenues from shale gas and oil during this period are strongly associated with decreased local government relianceonnesandfeesasrevenuesources. Local governments collected $1.7 trillion of general revenue in 2017. Intergovernmental transfers accounted for 36 percent of local general revenue in 2017 (figure 1). Local governments collected $1.7 trillion of general revenue in 2017. How have the sources of revenue for state and local governments changed over time? How did the Tax Cuts and Jobs Act change personal taxes? State and Local Finance Data: Exploring the Census of Governments, How the COVID-19 Pandemic is Transforming State Budgets, State Tax and Economic Review 68% of the world population projected to live in urban areas by 2050, says UN, United Nations Department of Economic and Social Affairs, May 16, 2018, un.org. 11. /F10 61 0 R << /Image73 63 0 R 2 0 obj 1 The largest state and local general own-source funds came from charges and property taxes (both 17 percent), followed by individual income taxes and general sales taxes (both 13 percent),and selective sales taxes (6 percent). How do state and local property taxes work? /Im2 19 0 R /F5 24 0 R Palgrave Macmillan, Cham. %PDF-1.4 Since development demands a lot of capital, this study will critically analyze the relationship between local government finance system i.e. State and local governments collected a combined $3.5 trillion of general revenues in fiscal year 2019. Nchuchuwe, F. F. Local government finance in Nigeria in Olojede, I., Fajonyomi, B., & Fatile, J. endobj What are the Social Security trust funds, and how are they financed? /ExtGState << /StructParents 5 /Type /Group GRIN Verlag. In so doing, they impose some taxes and rates on these economic activities as a way of generating funds for their We also look into the future in an. N')].uJr % Governments, with input from citizens, must decide how to manage risks A limited number of charges and taxes ensures higher social acceptance and minimal collection leakage. A citizens guide to the fascinating (though often complex) elements of the US tax system. Why is the VAT administratively superior to a retail sales tax? Much of the change in local government revenue relative to the economy resulted from increasing and decreasing transfers from federal and state governments. /F1 20 0 R << %%EOF What would the tax rate be under a national retail sales tax? What are tax credits and how do they differ from tax deductions? /Resources << /Count 10 Three local government officials were also interviewed. Randall, Megan, Tracy Gordon, Solomon Greene, and Erin Huffer. 10 0 obj And as the new normal begins to take shape, you'll also have to plan for the near- and long . 9 0 obj /XObject << 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. . /Resources << Hence the various sources of local government finance have become very crucial in order to foster development at all levels of governance. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] Longman. What is the schedule for the federal budget process? In contrast, revenues from charges steadily increased from 11 percent of general revenuein 1977 to 17 percent in 2019. (&. /F2 21 0 R Each time, the city brought in $7 million to $9 million in revenue. >> 7. >> McKinsey_Website_Accessibility@mckinsey.com. 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. Who benefits from the deduction for charitable contributions? 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. 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. Bundle charges. /Resources << /F1 20 0 R >> !ODL 2}PE^eF}6m 0|A h%D|k[ >> How do state earned income tax credits work? /GS31 30 0 R endobj Innovation is poverty reduction: The role of local government. 0000001743 00000 n 4, Government Finances. revenue (IGR) is the revenue that the local government generates within the area of its jurisdiction. How does the tax system affect US competitiveness? /Group << 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). Dubai instituted a knowledge dirham, a flat charge that applies to all government services. 7 /StructParents 4 This need underscores the eagerness on the part of state and local governments and even the federal government to look for /GS7 17 0 R Department of Political Science and Public Administration, PMB 4010, Babcock University, Ilishan-Remo, Ogun, Nigeria, You can also search for this author in What did the Presidents Advisory Panel on Federal Tax Reform say about the national retail sales tax? 1346-1366. Okwori, J., & Sule, A. Local governments created with administrative and financial autonomy have two sources of revenue (internal and external) to promote development at the grassroot. What types of nonemployer-sponsored retirement savings accounts are available? Who bears the burden of a national retail sales tax? 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. What did the American Taxpayer Relief Act of 2012 do? 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. << AMA is one of the most resourced MMDAs 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. Revenue generation as a major source of income for the state government: An empirical analysis of two parastatals. The City of Chicago has instituted such a program several times over the past two decades. /Contents 79 0 R /GS7 17 0 R 2y.-;!KZ ^i"L0- @8(r;q7Ly&Qq4j|9 Regarding dissipation, figure 4 shows the time series power curtailment of an integrated generation plant without energy storage. We'll email you when new articles are published on this topic. Nicole Badstuber, London congestion charge has been a huge success. What are the tax benefits of homeownership? 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. On what do economists agree and disagree about the effects of taxes on economic growth? 5 How did the Tax Cuts and Jobs Act change business taxes? What is the size of the opportunity? Local Government Finance and Implications for Development: A Case Study of the Ikorodu Government Area Lagos State. What is the effect of a lower tax rate for capital gains? 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. All revenue data are from the US Census Bureaus Annual Survey of State Government Tax Collections. /Contents 64 0 R Local government administration in Nigeria: A comparative perspective. What tax incentives exist to help families save for education expenses? The finding revealed that there is an average relationship between local government finance and development as other factors like proper utilization and administrative competence are necessary in development. /Meta44 31 0 R 1 0 obj /ExtGState << endobj Norton Francis and Frank Sammartino (2015). endobj What are the major federal excise taxes, and how much money do they raise? n effective 'ocal -overnment system rests ma%orly on the availability of human, governments development. /F2 83 0 R Revenue generation in Nigeria local governments is principally derived from TAX. How do US corporate income tax rates and revenues compare with other countries? 4. 4. 0v=.7&YP ?SfqZBEFowu8-RmHaav,Ax5dT# Last, municipalities could increase revenues by implementing higher fees for faster processing times or better service. Fines. In general, this intervention represents the horizon for innovation across all revenue streams. 0000003920 00000 n the federal and state governments in Nigeria to boost revenue generation under a programme known as the Accelerated Revenue Generation (ARG) Programme. /ExtGState << Majority Local governments collected $1.9 trillion in general revenues in 2019. N /Type /Group /Type /Page /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] The revenue generated is utilized by states and its functional departments for meeting the expenditures on infrastructure, public transportation, sanitation, legal systems, public safety, education, health care systems, military . /StructParents 7 One of the MMDAs involved in the use of recent ICTs to assist revenue mobilization is the AMA. How does the deduction for state and local taxes work? /XObject << The role that local governments can play in revenue generation will clearly depend on decisions about the overall system structure. 11 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. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /Group << All other taxesincluding corporate income taxes, hotel taxes, and business license taxesprovided $40 billion in revenue (2 percent). /F6 41 0 R endobj Maintaining public support is critical to the longer-term viability of such efforts, and cities must create an attractive business climate. 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