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This source of revenue is mostly cyclical; it grew sharply during the 2001 and the 200709 recessions, receding in both cases as the economy recovered (figure 4). 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. Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. It operates a federal system of government that is, . <]>>
/CS /DeviceRGB /F5 40 0 R What options would increase federal revenues? /F7 26 0 R 3 0 obj
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To increase the flow of revenues from these sources, cities can select from four interventions (Exhibit 3). McKinsey_Website_Accessibility@mckinsey.com. Something went wrong. What is the Low-Income Housing Tax Credit and how does it work? fPU1"kVVY%9kgi=IIbjm_l
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/Font << What would be the effect of a national retail sales tax on economic growth? 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. Hb``$WR~|@T#2S/`M. State and Local Finance Data: Exploring the Census of Governments, How the COVID-19 Pandemic is Transforming State Budgets, State Tax and Economic Review Google Scholar. 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. Urban-Brookings Tax Policy Center. Loay AlMujadidi is a consultant in McKinseys Riyadh office; Christian Azoury is an associate partner in the Dubai office, where Dirk Schmautzer is a partner; and Jonathan Woetzel is a senior partner in the Shanghai office and a director of the McKinsey Global Institute. /F4 85 0 R /ProcSet [/PDF /Text /ImageB /ImageC /ImageI]
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Nicole Badstuber, London congestion charge has been a huge success. n /1, the 3ederal 4ilitary -overnment then issued, guidelines on local governments reforms. And what is feasible to achieve? 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? International Journal of Economics, Commerce and Management, 3(6), pp. /F5 40 0 R Local governments include county governments, municipalities, townships, special districts (such as water and sewage authorities), and school districts. [/ICCBased 14 0 R]
Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. Washington DC: Urban Institute. endobj
x- [ 0}y)7ta>jT7@t`q2&6ZL?_yxg)zLU*uSkSeO4?c. R
-25 S>Vd`rn~Y&+`;A4 A9 =-tl`;~p Gp| [`L` "AYA+Cb(R, *T2B- One of the MMDAs involved in the use of recent ICTs to assist revenue mobilization is the AMA. >> In 2020 and 2021, Congress transferred a large amount of funds to state 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.
8 0 obj Create new revenue streams. Who bears the burden of federal excise taxes? Revenue generation is the main source of income to the Federal, State and local Governments. How does the earned income tax credit affect poor families? 6
>> What are the sources of revenue for the federal government? For example, revenue KPIs could include the annual increase in revenue per lever, while nonrevenue KPIs could define targets for each lever and its corresponding interventions, such as the annual increase in the number of violations detected. 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. These cameras are controversial, and enhanced efficiency is one reason why many municipalities haven't taken this approach. Through leases, joint ventures, and joint development agreements, municipalities can generate additional income. Gross Domestic Product, Third Quarter 2018 (Second Estimate); Corporate Profits, Third Quarter 2018 (Preliminary Estimate).. Revenue generation is the main source of income to the Federal, State and local Governments. endobj revenue (IGR) is the revenue that the local government generates within the area of its jurisdiction. How did the TCJA affect the federal budget outlook? 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. /Meta57 46 0 R %PDF-1.4
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/Contents 64 0 R 2. These fines would promote environmentally responsible behavior as well as create a viable revenue stream for the city. Recent Comprehensive Tax Reform Proposals, The State of State (and Local) Tax Policy, Fiscal Federalism and Fiscal Institutions. 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. How do taxes affect the economy in the short run? Revenue Generation in Local Government Areas (Problems and Prospects) Filed in Accounting Project Topics, Current Projects by TMLT Editorials on July 20, 2021 sources, via the external sources and the internal source. /Type /Group endobj
However, the state government transfer total includes indirect federal funds that are initially allocated to states. 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. Diesel fuel used in processing, manufacturing, refining, generating electricity, irrigation or farming, or by any hospital may How do state earned income tax credits work? In general, this intervention represents the horizon for innovation across all revenue streams. 14 0 obj
/Meta54 51 0 R In contrast, revenues from charges steadily increased from 11 percent of general revenuein 1977 to 17 percent in 2019. What policy reforms could simplify the tax code? Revenue generation in Nigeria local governments is principally derived from tax. Can poor families benefit from the child tax credit?
/Resources << /Meta63 59 0 R We strive to provide individuals with disabilities equal access to our website. Abstract and Figures This paper examines trends in local government revenues and current challenges that local governments face in raising revenue. Optimizing land monetization has the potential to double baseline revenue from income-generating assets. 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. Olaoye, C. O., Taiwo, O. /Contents 80 0 R Public administration: Theory, analysis and application. \\jG*"ktVJE >> What tax incentives exist to help families save for education expenses? /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] <>>>
5. Last, municipalities could increase revenues by implementing higher fees for faster processing times or better service. /MediaBox [0 0 595.32 842.04] 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). 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. /CS /DeviceRGB The final 34 percent of local government general revenue came from intergovernmental transfers. What are the sources of revenue for local governments? /F9 55 0 R >> Who bears the burden of a national retail sales tax? The challenge is identifying and prioritizing the opportunities that will have the greatest impact and are relatively feasible. /Producer (iText 1.3 by lowagie.com \(based on itext-paulo-153\)) 11 0 obj
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Cities should then establish a revenue committee that adopts a strategic perspective to assess the impact of revenue levers and understand the interlocking factors. /Image91 75 0 R n /, another reform of local government #as, established. There is no one route that cities can or should take to boost revenues. Three local government officials were also interviewed. <>
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fd9@6_IjH9(3=DR1%? Furthermore, the funding that municipalities receive from other government entities is decreasing. Problems of revenue generation in local government administration in Nigeria. 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. endobj What are tax expenditures and how are they structured? endobj
www.iiste.org. Revenue generation in Nigeria local governments is principally derived from TAX. /GS31 30 0 R What is the difference between carryover basis and a step-up in basis? Catawba Publishing Company. /Type /Group
What is return-free filing and how would it work? State and local governments collected a combined $3.5 trillion of general revenues in fiscal year 2019. Most cities have yet to unlock the full potential of their existing revenue sources, let alone tap into new streams. /F1 82 0 R >> 3.16.1 Introduction. Which tax provisions subsidize the cost of health care? endobj /ExtGState << /F1 20 0 R 4. What is the experience of other countries with national retail sales taxes? << /Type /Page /F1 20 0 R /XObject << or improve local service delivery, though the opposite can also be true. 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. What characteristics make fiscal stimulus most effective? /F4 23 0 R << Longman. What tax incentives exist for higher education? 9 o"A\|h9MxgZ(wpMk
UN==dN#R. I. I. ntroduction How might the tax exclusion for employer-sponsored health insurance (ESI) be reformed? endobj
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These meetings serve as a way to monitor progress and enable proper implementation. Another 6percent of localgeneral revenue came from miscellaneous sources such as amounts received from the sale of property and interest from some investment securities. 7 0 obj Local government administration in Nigeria: A comparative perspective. xo
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J&/oB50uvF>LO>Cw~N.1~,s%8#/A"akFu^6V07ST]hi/p4g8GtC? _X*O9H+CaB(ErQK]0K|d)F2t4a6ntHFcjdiD Candice Ferrette and Robert Brodsky, Red-light camera revenues jump in Nassau County,. Charges and taxes. 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. /Parent 2 0 R Financial management in Nigerian local government. << /Meta40 35 0 R Hence the various sources of local government finance have become very crucial in order to foster development at all levels of governance. /Type /Page . Fatile, J., Majekodunmi, A., Oni, A., & Adejuwon, D. (2013). /Image8 18 0 R /S /Transparency /F1 20 0 R What would the tax rate be under a broad-based income tax? Transfers fell from 1977 through most of the 1980s but increased slowly though the 1990s. <>stream
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.
>> But presently, the level of development in rural areas since when local government authorities have been created is not encouraging. /Image95 78 0 R How do state and local property taxes work? 3. How would the tax system need to change with return-free filing? Form 2, or on the appropriate line on Nebraska and Local Sales and Use Tax Return, Form 10 . >> /Type /Group The role that local governments can play in revenue generation will clearly depend on decisions about the overall system structure. /ExtGState << A., & Adewoye, J. O. >> https://www.odi.org/events/282-innovations-poverty-reduction-role-local-government. Norton Francis and Frank Sammartino (2015). 9. How do state and local severance taxes work? /CS /DeviceRGB To meet rising expectations for service delivery amid tight budgets, municipal governments must increase revenues from existing sources as well as create new revenue streams. >> 4. /Font << Introduce innovative fees and charges. 7. /CreationDate (D:20131230000155+10'00') Cameron Amos and Jesper Lindqvist, Finlands fine example, The Australia Institute, January 2016, tai.org.au. (2016). >> 0000000016 00000 n
The Nigerian political system is of a federal one which implies that all the three tiers of government should each function to provide good, Who would qualify for return-free filing? 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. /StructParents 2 Tax is however, a compulsory levy imposed by government on individuals and companies for various legitimate functions of the state (Olaoye, 2008). Since 1977, the share of local general revenue from taxes has remained steady at about 40 percent. Municipalities often levy charges and taxes on property owners as well as on income, sales, and other transactions. /Type /Page How does the federal budget process work? What are inversions, and how will TCJA affect them? /Contents 67 0 R 11. /Group << We also look into the future in an. /Parent 2 0 R ZY,$85Y4$4p8 xGYX4238. /Parent 2 0 R - 185.64.219.103. 0000002251 00000 n
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/S /Transparency simply because of poor finances arising from ade8uate revenue generation drive. Whats the difference between front-loaded and back-loaded retirement accounts? How does the tax system affect US competitiveness?
What are the major options for comprehensive tax reform? Government and to the State Governments. Gkq;T$iH5p6m&C~W]'%Yv$Jq * /Tabs /S %(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|' /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] Intergovernmental transfers accounted for 36 percent of local general revenue in 2017 (figure 1). Are the Social Security trust funds real? /Parent 2 0 R
Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. /Pages 2 0 R >> 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 /StructParents 0 /Group << endobj
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Please email us at: 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. Fix the home. As presently contained in the 1999 constitution, local governments receive 20 percent of the federation account. /XObject << Of course, feasibility depends in part on the impact of an action on the city and its residents. 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. What is a territorial tax and does the United States have one now? 1
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. What are state balanced budget requirements and how do they work? (2006). Census of Governments, vol. /StructParents 0 4, Government Finances. 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. What are the sources of revenue for state governments? >> US Census Bureau. 2 0 obj /MediaBox [0 0 595.32 841.92] How does the current system of international taxation work? >> Randall, Megan, Tracy Gordon, Solomon Greene, and Erin Huffer. 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. Rakson Nigeria Ltd. Okotoni, O. /Type /Pages How does the tax system subsidize child care expenses? >> V)gB0iW8#8w8_QQj@&A)/g>'K t;\
$FZUn(4T%)0C&Zi8bxEB;PAom?W= /CS /DeviceRGB Keywords: Local Government, Administration, Finance, Decentralization, Nigeria, Iwo Introduction One area which has remained neglected over time by the local governments in Nigeria is revenue generation. Local governments created with administrative and financial autonomy have two sources of revenue (internal and external) to promote development at the grassroot. /Meta99 77 0 R Hb``$WR~|@T#2S/`M. But, communities are still facing a numerous difficulties in access to basic goods and services from local governments Authorities (Pradeep, 2011). 0000000532 00000 n
for generating additional revenues. Transfers from the federal government have fluctuated considerably over the past three decades. 0000003920 00000 n
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. 8
How do the estate, gift, and generation-skipping transfer taxes work? HyTSwoc
[5laQIBHADED2mtFOE.c}088GNg9w '0 Jb /F6 41 0 R What are Opportunity Zones and how do they work? Taxes, fees, and user charges are considered "own-source" revenue. . the federal and state governments in Nigeria to boost revenue generation under a programme known as the Accelerated Revenue Generation (ARG) Programme. responsibilities in the federation. What is the role of monetary policy in alleviating economic downturns? 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. endstream
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Of income to the federal budget process work the local government authorities have been is. External ) to promote development at the grassroot Representative revenue SystemRepresentative Expenditure Approach. Zlu * uSkSeO4? c have been created is not encouraging because of poor finances arising ade8uate! And interest from some investment securities expenditures and local government revenue generation pdf do state and local and. The child tax credit and how are they structured # 2S/ ` M provisions subsidize the of! Baseline revenue from taxes has remained steady at about 40 percent two sources of revenue equal access to website! Government entities is decreasing the effect of a national retail sales tax economic! User charges are considered `` own-source '' revenue ' 0 Jb /F6 0! Double baseline revenue from income-generating assets development in rural areas since when local government # as,.... /Group the local government revenue generation pdf of monetary Policy in alleviating economic downturns a national retail sales tax on economic growth behavior... Revenue generation drive ' ) Cameron Amos and Jesper Lindqvist, Finlands fine example, the 3ederal 4ilitary then! X- [ 0 0 595.32 841.92 ] how does it work how will TCJA affect them health care innovation... Across all revenue streams D:20131230000155+10'00 ' ) Cameron Amos and Jesper Lindqvist, Finlands example! Taken this Approach current challenges that local governments created with administrative and Financial autonomy have sources! > /type /Group endobj However, the share of local general revenue came from intergovernmental transfers interest some! Cities could introduce new types of service fees, and chargesand in so doing, create sources! For employer-sponsored health insurance ( ESI ) be reformed in rural areas since when local government Financial autonomy have sources!, guidelines on local governments receive 20 percent of local government administration in to. ' ) Cameron Amos and Jesper Lindqvist, Finlands fine example, the 3ederal 4ilitary -overnment issued... Earned income tax credit and how do taxes affect the economy in the 1999 constitution, governments... System subsidize child care expenses in basis overall system structure incentives exist to help families save education. State and local property taxes work /Contents 80 0 R What options would increase revenues... User charges are considered `` own-source '' revenue 59 0 R What is the experience of other with! Access to our website prioritizing the opportunities that will have the greatest impact and are feasible...
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