>> This can be accomplished through moves that wont adversely affect public opinion or a citys competitiveness in attracting businesses and economic development. GRIN Verlag. /Group << endobj /Length 5747 /Meta57 46 0 R How did the TCJA change the standard deduction and itemized deductions? How did the TCJA affect incentives for charitable giving? Revenue generation in Nigeria local governments is principally derived from tax. /ExtGState << What have budget trends been over the short and long term? >> /Meta78 65 0 R /XObject << /Group << >> However revenue generation by communities dates back to 1986 when central government requested the local . 0000001471 00000 n 13 0 obj 15 0 obj We strive to provide individuals with disabilities equal access to our website. How do state and local severance taxes work? Some are widely practiced, while others represent emerging and innovative options for city governments to pursue. Download chapter PDF Introduction. /Producer (iText 1.3 by lowagie.com \(based on itext-paulo-153\)) /S /Transparency How do the estate, gift, and generation-skipping transfer taxes work? To guide price hikes, cities could use benchmarks to determine the acceptable range. endobj What policy reforms could simplify the tax code? 3 << What characteristics make fiscal stimulus most effective? for generating additional revenues. What is the Medicare trust fund, and how is it financed? What tax incentives exist for higher education? What did the Presidents Advisory Panel on Federal Tax Reform say about the national retail sales tax? ;nUG]~[ sp!@Q06"NY;k g],g>$6%E#w .CB}6{yghj9Kv:Q9w l+/;2w !ODL 2}PE^eF}6m 0|A h%D|k[ A limited number of charges and taxes ensures higher social acceptance and minimal collection leakage. /Meta38 38 0 R What are the drawbacks of return-free filing? /Meta49 54 0 R endobj www.iiste.org. /Resources << Who bears the burden of federal excise taxes? - 185.64.219.103. Li'}4I>A7i3;g f>dm,orW6XCid&ntGMhJ^ur!y]j]V CWD.6Eh.\Z35 =+`=+Zj:8l?3ZbS8h._=mp,:bx+2r&^N J'%3U4oHnkb~u*k.[pg https://www.odi.org/events/282-innovations-poverty-reduction-role-local-government. 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. A review of revenue generation in Nigeria local government: A case study of Ekiti State. How do state earned income tax credits work? In the last 10 years, Illinois has reduced the portion of income tax returned to cities and towns. Each time, the city brought in $7 million to $9 million in revenue. What does it mean for a government program to be off-budget? Service fees. How would small businesses be treated under a VAT? What are tax expenditures and how are they structured? Palgrave Macmillan, Cham. What are defined contribution retirement plans? 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. 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 /S /Transparency /Resources << /Image89 71 0 R >> /Tabs /S Charges and miscellaneous fees, such as water, sewerage, and parking meter fees collected by municipal or county governments, provided $385 billion (23 percent of local general revenue). /Font << Nicole Badstuber, London congestion charge has been a huge success. The reforms #hich gave recognition to, the local level #ere ta$en care of. City assets and investments. The logic is that, in areas where the revenue capacity is high, a relative higher tax . <>>> Predicting Municipal Fiscal Distress: Aspiration or Reality? /Parent 2 0 R Taxes accounted for 42 percent of local general revenue in 2017. 11 0 obj 12 0 obj /F1 20 0 R Learning theories: Their influence on teaching methods. How do state and local property taxes work? >> Two Decades in Effect: Volume-Based Waste Fee System in South Korea, Ministry of Environment, South Korea, January 2016. How does the availability of tax-favored retirement saving affect national saving? /Contents 43 0 R New York, Scribner Press in Institute of Management and Leadership Professional Nigeria (2012). Key 2022 Takeaways. State governments collected $2.2 trillion of general revenues in 2019. The challenge is identifying and prioritizing the opportunities that will have the greatest impact and are relatively feasible. 68% of the world population projected to live in urban areas, un.org. The maximum curtailed power was 963 MW, and the total annual curtailed energy generation was 560 million kWh, with a . /MediaBox [0 0 595.32 841.92] /ExtGState << Local government revenue comes from property, sales, and other taxes; charges and fees; and transfers from federal and state governments. Unlocking the full potential of city revenues. stream How do taxes affect the economy in the long run? /Meta52 49 0 R Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. trailer The final 34 percent of local government general revenue came from intergovernmental transfers. stream /StructParents 6 What is the Canadian experience with a VAT? <>stream /Resources << Public administration: Theory, analysis and application. % Transfers for education programs account for over two-thirds of state government transfers to localities. >> What is the difference between carryover basis and a step-up in basis? The potential effect on electricity prices is discussed in the Additional Comments section below. 0000003348 00000 n Why is the VAT administratively superior to a retail sales tax? /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /F10 61 0 R /F5 40 0 R Taxes, fees, and user charges are considered "own-source" revenue. /F2 83 0 R Cities that want to implement new charges will be more likely to build public support if such measures both induce positive behavior and have a clear, equitable, and risk-averse public benefit. In our experience, governments that pursue a practical approach to revenue generation can capture up to 50 percent of incremental revenues. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /Resources << /F2 21 0 R /S /Transparency /Meta77 66 0 R 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. /ExtGState << /Group << Principles of leadership. Gordon, Tracy. /Parent 2 0 R 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). /Font << What does the IRS do and how can it be improved? 2 0 obj 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. /F2 21 0 R What are the options for taxing wealth transfers? <>stream What are the sources of revenue for local governments? 2. << 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. /Image73 63 0 R Its time to change it, CityMetric, March 12, 2018, citymetric.com. (2014). D?M5j$3X,/L )o-@ci"wAB%O3FQO ~3(,*Y| ?3efuj 6 6+?j|yDVQvKxzV. >Pu*wH:97CWW << This preparatory work generally consists of collecting the relevant data and developing the current revenue baseline. What is global intangible low-taxed income and how is it taxed under the TCJA? endobj Eneanya, A. N. (2012). We'll email you when new articles are published on this topic. What is carried interest, and how is it taxed? This effect is the strongest in mostly rural and sparsely populated areas where lignite is mined and used for power generation. >> How does the earned income tax credit affect poor families? 11 0 obj The role that local governments can play in revenue generation will clearly depend on decisions about the overall system structure. [/ICCBased 14 0 R] V)gB0iW8#8w8_QQj@&A)/g>'K t;\ $FZUn(4T%)0C&Zi8bxEB;PAom?W= jzz^Q@I9AhTu>GpLs9KL~z]?'PI c&>/uJ9RaUm0XJ|dI3O\Yo^m\l*oGdhe)d=j /ExtGState << /MediaBox [0 0 595.32 842.04] endobj /F7 42 0 R Revenue Generation in Nigeria's Local Government. /F7 42 0 R Each time, the city brought in $7 million to $9 million in revenue. 2023 Springer Nature Switzerland AG. In 2019, 4 percent of local government general revenue came directly from the federal government (e.g., federal funds for local transportation projects) and 31 percent came from state governments (the numbers do not sum to the total share from intergovernmental transfers because of rounding). /F4 85 0 R In Los Angeles, for instance, developers can obtain an expedited engineering permit for a surcharge of 40 percent of the permits cost. /Type /Group 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. How do financing methods affect the distributional analyses of tax cuts? 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 . What is the Low-Income Housing Tax Credit and how does it work? Impact on economy. What are state rainy day funds, and how do they work? /Resources << There is no one route that cities can or should take to boost revenues. <>>> share. 2 0 obj What did the 200810 tax stimulus acts do? What are dynamic scoring and dynamic analysis? endobj Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. Regarding dissipation, figure 4 shows the time series power curtailment of an integrated generation plant without energy storage. Something went wrong. A., & Adewoye, J. O. /Resources << 3. >> 5 0 obj 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. >> 13 0 obj endobj /Group << /F1 20 0 R Uhunmwuangho, S. O., & Aibieyi, S. (2013, July). This intervention is typically most applicable to service feesspecifically, utility services such as water, sewage, or electricity. /CS /DeviceRGB The Political Economy of Colonialism and Nation-Building in Nigeria pp 325343Cite as. /Contents 29 0 R % When the State increased the income tax rate in 2011 it did not share the increased revenues with local governments. Accessed 18 July 2016. %PDF-1.4 /Parent 2 0 R /Parent 2 0 R Filipatali, T. (2013). >> CrossRef Performance meetings should be scheduled on a weekly basis to track revenue generation and build ownership. /Meta37 37 0 R Aravind Boddupalli and Kim Rueben (2021), Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012 Last, municipalities could increase revenues by implementing higher fees for faster processing times or better service. What is the size of the opportunity? (2006). /Type /Group 0000003670 00000 n >> 9 3.16.1 Introduction. Miscellaneous sources, such as special assessments, provided 7 percent of state general revenue. HyTSwoc [5laQIBHADED2mtFOE.c}088GNg9w '0 Jb <> How would the tax system need to change with return-free filing? istorically, the development of direct taxation in local, government in Nigeria can be traced to the )ritish pre*colonial period under this, Recently the revenue that accrues to local government is derived from t#o broad. 3 0 obj (All sources of local government general revenue do not sum to 100 percent because of rounding.) In addition, elected officials must strike a tricky balance between raising taxes and fees and maintaining public support. << 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. 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. Okwori, J., & Sule, A. /Resources << What would be the effect of a national retail sales tax on economic growth? As a result, local governments are continually forced to levying of non-property taxes and fees (Steiss et al, 2011,). /S /Transparency Revenue: Sources of revenue to local and state governments in Nigeria (in) state and local government in Nigeria: The changing scene. One of the MMDAs involved in the use of recent ICTs to assist revenue mobilization is the AMA. Do all people eligible for the EITC participate? How does the deduction for state and local taxes work? How do state estate and inheritance taxes work? /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] 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. What is the experience of other countries with national retail sales taxes? /Group << /StructParents 2 203 copies of the questionnaire were administered to staff of Ikorodu local government who were simple randomly selected of which 188 (92.6%) were retrieved while 15 (7.4%) copies were not retrieved. /Image97 76 0 R /F9 55 0 R /GS31 30 0 R Local tax limitations: a primer Property taxes . Cresthill Publishers Limited. To instill a culture of performance, organizations should set targets for net revenues and select key performance indicators (KPIs). /Image8 18 0 R /Type /Page Dibie, R. A. /Image8 18 0 R out of variations from the revenue generation capacities of component units. << /ExtGState << nQt}MA0alSx k&^>0|>_',G! 1 0 obj It also excludes revenues from government's "business-like" activities such as water, gas, electricity, and transit utilities; government-run liquor stores; and government-administered insurance trusts such as employee retirement, unemployment compensation, and workers compensation systems. To increase the flow of revenues from these sources, cities can select from four interventions (Exhibit 3). 1 0 obj 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. 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. What is the difference between marginal and average tax rates? What are health reimbursement arrangements and how do they work? How do US corporate income tax rates and revenues compare with other countries? (eds) The Political Economy of Colonialism and Nation-Building in Nigeria. But, communities are still facing a numerous difficulties in access to basic goods and services from local governments Authorities (Pradeep, 2011). /MediaBox [0 0 595.32 842.04] How did the TCJA affect the federal budget outlook? Tax as a financial charge, is the main source of revenue generation for any government. 8. 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. endobj We also look into the future in an. To serve as the third tier of government through #hich appropriate services and, development are made in response to the #ishes of local community through their, &. <> Intergovernmental transfers accounted for 36 percent of local general revenue in 2017 (figure 1). 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. 5. /Meta39 39 0 R First, to identify the relevant revenue streams and which interventions to apply, cities should determine the relevant data and revenue baselines. One strategy that cities have followed is introducing an amnesty program for delinquent parking tickets that waives penalties and additional fines as an incentive for motorists to pay up. revenue allocation among federal, state and local governments in the country. >> Another 6percent of localgeneral revenue came from miscellaneous sources such as amounts received from the sale of property and interest from some investment securities. What are error rates for refundable credits and what causes them? Keywords : development, projects, revenue, generation, government. <>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 13 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] 2 0 obj /CS /DeviceRGB 2y.-;!KZ ^i"L0- @8(r;q7Ly&Qq4j|9 /F1 20 0 R Municipalities raise revenues by charging for services such as public parking, toll roads, waste management, and building permits, among others. 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