Challenges of property taxation implementation in local authorities of Yobe State, Nigeria

Abstract

Rating tax is a form of property tax that is levied by Local authorities in order to ensure the continuous provision of services which are beneficial to all (Busari, 2017). This source of revenue forms a substantial part of municipal government revenue in most countries. It is disheartening to know that this variable source of revenue to the state seems to have been underutilized or neglected by the local authorities in Yobe state, hence the local authorities in the state lives and cries on nonavailability of revenue. It is against this background that the research was embarked upon to examine the challenges of property taxation in Yobe state, as the current practice by the State and Local Authorities to depend solely on revenue generated from the oil sales is no longer sustainable. The State and the Municipal Government must complement the oil revenue generated and shared by the Federal Government through its internal revenue (IGR) sources, hence the need to unleash the full potential of property taxation is important to boost the internally generated revenue (IGR) of the state. The study established that there is zero level of readiness to implement property taxation by local authorities in the state as there is no policy to implement property taxation, the local authorities lack property taxation experts and there is partial awareness of the existing rating laws in the country by the municipal councils. The study also established that the municipal councils requires property databank, funding, rating authority/unit, infrastructure, tools and human resources to implement property taxation in the state. The study found that the challenges hindering implementation of property taxation in the state include; lack of housing databank, assessment problems, lack of expert, security challenge, public perception, funding, government policy, technology and corruption. The study demonstrated the wider implications of these challenges and in order to achieve the sole aim of implementing property taxation by the municipal councils of the state. The study recommended a range of measures as follows: The Tenement rates law of 1989 has outlived its usefulness and should be amended to pave way for reforms and policies that would enhance rating tax implementation; local government should be given proper autonomy as guaranteed in the law of the land by operating independently; laws and policies guiding the administration of property tax should be vigorously implemented; public enlightenment and sensitization should be embarked upon to keep the public well informed about the processes and practices throughout the course of the implementation; adequate funding should be provided for the purchase of equipment needed such as computers, networks, storage devices and staff training for easy implementation of the property taxation; adequate mechanism should be in place to checkmate corruption cases in the municipal councils; requisite human and logistical resources should be given priority to address the lack of capacity to implement property taxation due to unqualified staff; the use of statutory formula should be avoided because it has been adjudged to be primitive and unscientific; property databank should be established to enable easy capture, storage, updating and interrogation of all types of property data and technology based rate administration should be implemented despite high initial installation costs. It was concluded that only with the fulfilment of the above resources as well as addressing the above mention challenges, implementation of property taxation in the seventeen local authority would generate the revenue needed at the municipal level to provide adequate and quality public amenities, facilities and services as well as to enhance local development of Yobe state.