Property taxes are an important revenue mechanism for local governments. The administration of property taxes is often undermined by a range of problems…
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Philippines government auditors have merely scratched the surface of irregularities committed by past Manila city administrators, Manila Mayor Domagoso said on 4 November 2020 when commenting on the 2019 annual audit report for Manila. The auditors found nearly US$4 million in unliquidated cash advances, inadequately protected lease contracts and under-assessed real property units that resulted in foregone realty taxes.
India’s Thane Municipal Corporation is working on a pilot blockchain-based solution for property tax assessment in partnership with Hyderabad-based Veridoc Global India, as part of a larger effort to create a digital system to engage with citizens according to this 10 January 2020 report; system implementation is expected in about two months. Integrating blockchain technology in property tax documents is expected to help in faster approvals and provide a single point for data availability.
Municipalities in Canada’s Nova Scotia province are proposing to phase out a property tax assessment cap over 13 years. This cap was introduced in 2005 to cushion the impact of surging property tax assessments in 2005, backdating the legislative change to 2001. The cap, however, is creating some difficult distribution impacts with municipal officials warning that it is having "unintended consequences" and eroding tax fairness and housing affordability as outlined in this 7 November 2019 article.
During the 2017-18 financial year the Thiruvananthapuram City Corporation in India collected less than 20% of its revenue budget. Many public sector institutions are among the property tax defaulters and the civic body has hardly taken any effort to make them pay. The City Corporation’s revenue efforts are frustrated by a legal anomaly preventing it from initiating revenue recovery proceedings against state or central institutions even though they benefit from the Corporation’s expenditure.
Bruhat Bengaluru Mahanagara Palike (BBMP), the Bengaluru (Bangalore) civic body, has decided to remap the tech hub landscape after latest satellite images from the ISRO exposed chinks in its outdated property records, an official said in mid-October 2019. Bengaluru will be the first Indian city to use satellite data to map its civic wards. Revenue staff will be trained to re-map the expanded city with the help of the 1-metre resolution images. BBMP plans to develop a supporting app.
In a move aimed at improving accountability, Mumbai’s Brihanmumbai Municipal Corporation (BMC) announced in early August 2019 that it will in future tax individual flat owners directly, rather than their building societies. BMC made the decision as some flat owners refused to contribute and under prevailing legislation, the building societies had to pay the property tax on their behalf. The amended legislation allows BMC to initiate action directly against the flat owner in the case of default.
India’s Maharashtra state government on 2 July 2019 amended the Municipal Corporation Act to allow exemptions to the property tax for properties of 500 sq ft or less. Nearly three million properties in Mumbai including 1.5 million residential properties will benefit from this change to the law. Rahul Narvekar, NCP MLC, correctly pointed out that from an equity perspective the property tax exemption should have been based on the rateable value of the property rather than its size.
India’s Bangalore Development Authority (BDA) has gone digital in June 2019. The city planning authority has fm this ﬁnancial year introduced online services, making e-payments of property tax mandatory and issuing soft copies of possession certiﬁcates and khatas. Owners of properties developed by BDA are required to register on the web, providing details such as cellphone numbers and property IDs, before paying property tax online. The system generates receipts that taxpayers can download.
This 26 June 2019 video points out that the Chief Minister of the Indian state of Maharashtra, Devendra Fadnavis, not only has an unpaid water bill,, but he has not paid property tax since 2014 and his property tax arrears amount to over US$100,000. Such behaviour is often associated with corruption in local government revenue management.
#PFMConnect Les revenus des administrations locales peuvent contribuer de manière significative à la mobilisation des ressources nationales, un objectif de l'ODD17 (17.1 Recettes fiscales et autres). Malheureusement, la corruption peut perturber les flux de revenus des administrations locales. Notre vidéo présente certaines stratégies pour lutter contre la corruption dans les systèmes de revenus des gouvernements locaux. #corruption #localgouvernement #revenue #systèmes # SDG17
#PFMConnect As receitas do governo local podem fazer uma contribuição significativa para a mobilização de recursos domésticos, uma meta do SDG17 (17.1 Imposto e outras receitas). Infelizmente, a corrupção pode minar os sistemas de receita do governo local e interromper os fluxos de receita do governo local. Nosso vídeo apresenta algumas estratégias para combater a corrupção nos sistemas de receita do governo local. #corrupção # governolocal #receita # sistemas # SDG17
The Bahamas Deputy Prime Minister KP Turnquest on 29 May 2019 outlined the government’s plan to add “as many as 9,000 unregistered properties” to the real property tax roll during the upcoming door-to-door assessment that will begin in June 2019 on New Providence. He said the real property tax initiative will bring fairness and transparency to the property valuation process by establishing objective, local and internationally accepted measurements that are critical for property tax assessments.
India’s Chhattisgarh High Court on 14 May 2019 held that the petitioner Bharati Airtel Limited, a major Indian telecommunications service provider, is liable to pay property tax in respect of or otherwise relating to underground cable laid for the purpose of providing telephone services or other telecommunication facilities.
This 16 May 2019 paper argues for changes to the council tax system in London. The paper argues that this tax is highly regressive in relation to property value and income, economically inefficient and increasingly unsustainable as a local government revenue source. A three stage reform process is proposed comprising the devolution of council tax to London, some immediate reforms to protect the poorest Londoners and the replacement of the existing banding system with a proportional property tax.
This excellent 24 April 2019 article has been prompted by a recent statement by India’s Telangana Chief Minister K Chandrasekhar Rao that a new Revenue Act will be prepared that addresses the matter of “conclusive titles”. The article outlines why land titles are currently unclear, what conclusive titles are about, what potential benefits to the people and the State are expected from the proposed Act and what challenges they pose in the process of their implementation.
Do you use a form filler in a municipal office in India to complete the payment of your property tax? We would like to hear from you. Using automated systems is one method available to local governments to reduce corruption in property tax revenue collection. This presentation, given to an OECD conference in Tunis on 25 March 2019, outlines strategies for combatting associated corruption in local government revenue management around the world. #corruption #localgovernment #revenue #India #OECD
Ireland’s Prime Minister, Leo Varadkar, said on 18 April 2019 that Irish local authorities are to be given the power to increase and reduce the rate of local property tax (LPT) by more than the current 15% limit. He also said that while poorer local authorities will continue to require to be financially supported, such support will no longer have to come from richer councils, particularly in the Dublin area. Any required equalisation fund need not be funded from the local property tax.
India’s Maharashtra state will use drones to undertake the "biggest" land survey exercise in modern India, as the government aims to give ownership rights to about 15 million rural households in the western state who are already paying taxes. Starting June 1, 2019, dozens of drones mounted with high-resolution cameras will survey the inhabited areas of 40,000 villages in the state. The exercise is expected to be completed in three years.
India’s Maharashtra state government on 8 March 2019 approved an exemption from property tax for 1.7 million Greater Mumbai residential units with 500 square feet carpet area or less administered by the Brihan Mumbai Municipal Corporation (BMC) as from 1 January 2019. A 60 per cent concession in property tax for owners of houses between 501 square feet and 700 square feet was also introduced. These measures will reduce BMC’s US$714 million annual property tax revenue by US$50 million.
Research institute Oxford Economics forecast in November 2018 that all the top 10 fastest-growing cities by GDP between 2019 and 2035 will be in India. This forecast demonstrates the importance of these cities ensuring they have efficient and equitable property taxes and user charges to help fund their fast growing infrastructure needs.
Many Indian municipal commissioners would like to have a responsive community demonstrating willingness to pay property taxes like Andhra-Pradesh Ongole’s municipal commissioner, Sankranti Venkata Krishna Corporation. At a face-to-face meeting with residents on 27 December 2018 Ongole’s municipal commissioner many residents complained that though they were willing to pay the taxes and demanding the officials to impose property tax, the municipal staff were neglecting their requests.