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What is foreign-derived intangible income and how is it taxed under the TCJA? 3. /Contents 70 0 R /Count 10 /F1 20 0 R They provided 22 percent of state and local general revenues in 1977, dropped to a low of 16 percent in 1989, and returned to 22 percent in 2003. For example, cities could institute new charges for the disposal of food waste. Revenue generation: Its impact on government developmental effort (A study of selected local council in Kogi East senatorial district). Meanwhile, housing-program transfers are about 40 percent of federal transfers to local governments. What are the economic effects of the Tax Cuts and Jobs Act? >> In 2019, transfers from the federal government provided 22 percent of combined state and local general revenues. nQt}MA0alSx k&^>0|>_',G! 10 0 obj
/Parent 2 0 R 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. /Meta38 38 0 R 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. Transfers for education programs account for over two-thirds of state government transfers to localities. /Meta39 39 0 R /Meta49 54 0 R We'll email you when new articles are published on this topic. %%EOF
What is the new markets tax credit, and how does it work? Financial management in Nigerian local government. 7 0 obj What tax changes did the Affordable Care Act make? First, to identify the relevant revenue streams and which interventions to apply, cities should determine the relevant data and revenue baselines. Who bears the burden of a national retail sales tax? This need underscores the eagerness on the part of state and local governments and even the federal government to look for Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. Washington DC: Urban Institute. endobj
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[5laQIBHADED2mtFOE.c}088GNg9w '0 Jb endobj Fines. << In so doing, they impose some taxes and rates on these economic activities as a way of generating funds for their Governments, with input from citizens, must decide how to manage risks Sarah Jindra, Chicagos ticket amnesty program begins today, WGN9, November 10, 2015, wgntv.com. 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). 2. The American Recovery and Reinvestment Act of 2009 created a sharp uptick in transfers from the federal government between 2009 and 2011, peaking at 25 percent of state and local revenues in 2010 and 2011, before falling back to 22 percent in 2012. /GS31 30 0 R In general, cities draw from four types of sources that each include numerous levers (Exhibit 2). 7 Other strategies, such as payment plans, can also reduce leakage and increase collections. Edogbanya, A., & Sule, J. G. (2013). Miscellaneous sources, such as special assessments, provided 7 percent of state general revenue.
Elected officials have four primary revenue sources, each containing multiple levers. /Type /Catalog /F5 40 0 R What are the benefits of return-free filing? How receptive citizens and businesses are to a given intervention in a revenue stream can have significant impact on the interventions long-term viability. >> What are itemized deductions and who claims them? 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. endobj
/Resources << In general, this intervention represents the horizon for innovation across all revenue streams. How do US corporate income tax rates and revenues compare with other countries? /F5 40 0 R What types of federal grants are made to state and local governments and how do they work? 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. The usual practice in this country (Nigeria) is that political parties and individual candidates often make
Before cities can begin to optimize their revenues, they must first compile an inventory of existing revenue streams. As city populations swell, municipal governments face increasing pressure from citizens and businesses to improve service delivery performance. Each time, the city brought in $7 million to $9 million in revenue. 2 0 obj
Majority >> What are automatic stabilizers and how do they work? >> Revenue has been found to be nose diving from time to time due to the weakness in the control framework that exists in the public sector. N')].uJr Contemporary issues in local government administration in Nigeria. Diesel fuel used in processing, manufacturing, refining, generating electricity, irrigation or farming, or by any hospital may Meanwhile, revenue from sales taxes steadily increased from 5 percent to 7 percent between 1977 to 2017 (figure 2). 9evelopment is highly associated #ith, much revenue is needed to plan, execute and maintain infrastructures and facilities, developmental pro%ects li$e construction of accessible roads, building of public, schools, health care centers, construction of bridges among others are sources, generated from taxes, royalties, haulages, fines and, international governments. How did the Tax Cuts and Jobs Act change business taxes? /Meta56 45 0 R /Type /Group stream
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2023 Springer Nature Switzerland AG. To instill a culture of performance, organizations should set targets for net revenues and select key performance indicators (KPIs). /GS7 17 0 R This effect is the strongest in mostly rural and sparsely populated areas where lignite is mined and used for power generation. /CS /DeviceRGB How might the taxation of capital gains be improved? The Federal government appointed Consultants/ Monitoring agents on Value Added Tax (VAT) and Withholding Tax (WHT) in the Oil Industry.
By doing so, the people's interest would be geared towards giving their maximum support to the local government which would lead to the development of the rural area? 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. /F5 40 0 R To address this problem, requires proper implementation of plans directed at enhancing adequate revenue generation. 4
for generating additional revenues. Finally, cities could introduce new types of service fees, fines, and chargesand in so doing, create new sources of revenue. 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. Predicting Municipal Fiscal Distress: Aspiration or Reality? Nicole Badstuber, London congestion charge has been a huge success. /Type /Group Service fees. Sarah Jindra, Chicagos ticket amnesty program begins today, WGN9, November 10, 2015, wgntv.com. general sales taxes and gross receipts taxes, Coronavirus Response and Relief Supplemental Appropriations Act, federal funds for local transportation projects, Surveying State Leaders on the State of State Taxes, More Than Fines and Fees: Incorporating Equity into City Revenue Strategies, State and Local Government Revenues and Racial Disparities, Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012, Governing with Tight Budgets; Long Term Trends in State Finances, Center on Labor, Human Services, and Population, Metropolitan Housing and Communities Policy Center, 8 percent from selective sales taxes on purchases such as, 2 percent from selective sales taxes on purchases such as, 3 percent from other taxes such as a locality'staxes onhotel bookingsandrestaurant meals. How does the federal government spend its money? How accurate are long-run budget projections? >> 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. 0v=.7&YP ?SfqZBEFowu8-RmHaav,Ax5dT# Filipatali, T. (2013). What is the difference between a tax-exclusive and tax-inclusive sales tax rate? McKinsey_Website_Accessibility@mckinsey.com. 1. << What types of nonemployer-sponsored retirement savings accounts are available? /CS /DeviceRGB What are tax expenditures and how are they structured? /StructParents 2 /XObject << stream
/StructParents 7 X-ray of Local government administration in Nigeria. Municipalities often levy charges and taxes on property owners as well as on income, sales, and other transactions. /Type /Pages . Unlocking the full potential of city revenues. What are error rates for refundable credits and what causes them? /Resources << 2 0 obj What are health reimbursement arrangements and how do they work? /MediaBox [0 0 595.32 841.92] What tax incentives encourage energy production from fossil fuels? 4 0 obj
/F6 41 0 R /Font << Assessing Fiscal Capacities of States: A Representative Revenue SystemRepresentative Expenditure System Approach, Fiscal Year 2012. >> 6 0 obj Of course, feasibility depends in part on the impact of an action on the city and its residents. Los Angeles, for example, charges higher fees for expedited permitting and licensing processes. (*(%8H8c-
fd9@6_IjH9(3=DR1%? /Font << 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. 7. >> /Meta99 77 0 R Lucy Dadayan and Kim Rueben (2021), More Than Fines and Fees: Incorporating Equity into City Revenue Strategies /Contents 56 0 R /Annots [27 0 R 28 0 R] Fatile, J., Majekodunmi, A., Oni, A., & Adejuwon, D. (2013). wG xR^[ochg`>b$*~ :Eb~,m,-,Y*6X[F=3Y~d tizf6~`{v.Ng#{}}jc1X6fm;'_9 r:8q:O:8uJqnv=MmR 4 This gave a substantial and unprecedented reform of autonomy to the, devolved on the local government therefore, became a common $no#ledge that, most of the local government are finding it difficult to cope #ith the present level, The principal aims of creating local governments #ere as, /. University Press. >> /GS31 30 0 R What kinds of tax-favored retirement arrangements are there? Alao, D. O., & Alao, E. M. (2013). We also look into the future in an. What tax incentives exist to help families save for education expenses? The revenue generated is utilized by states and its functional departments for meeting the expenditures on infrastructure, public transportation, sanitation, legal systems, public safety, education, health care systems, military . Palgrave Macmillan, Cham. endobj
What would be the effect of a national retail sales tax on economic growth? How large are the tax expenditures for retirement saving? /Im2 19 0 R /Meta58 47 0 R 3 0 obj
What does the IRS do and how can it be improved? In 2020 and 2021, Congress transferred a large amount of funds to local governments as part of the CARES Act, the Coronavirus Response and Relief Supplemental Appropriations Act (part of the December 2020 omnibus bill), and the American Rescue Plan. /Font << In 2019, 31 percent of state general revenue came from the federal government (e.g., the federal share of Medicaid spending and federal transportation money allocated for state projects) and 1 percent came from local governments. /CS /DeviceRGB
How did the TCJA change taxes of families with children? /Type /Page G$\0#?; >> University of Lagos Press. endobj
In contrast, revenues from charges steadily increased from 11 percent of general revenuein 1977 to 17 percent in 2019. state and local government with a recommendation that conscious effort be made to allocate more revenues to states and local governments. The involvement of leadership as well as all relevant departments and municipalities would help to ensure proper implementation across all levels. >> >> International Journal of Arts and Humanities Bahir Dar, Ethiopia, 2(3), S/No. How are different consumption taxes related? Do existing tax incentives increase homeownership? /F3 22 0 R /Meta55 44 0 R Urban Institute, Brookings Institution, and individual authors, 2022. 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). stream
/Meta44 31 0 R >> What are defined benefit retirement plans?
Provided by the Springer Nature SharedIt content-sharing initiative, Over 10 million scientific documents at your fingertips, Not logged in What is return-free filing and how would it work? << State and Local Finance Data: Exploring the Census of Governments, How the COVID-19 Pandemic is Transforming State Budgets, State Tax and Economic Review >> /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] %PDF-1.5
/Meta78 65 0 R What have budget trends been over the short and long term? /Meta53 50 0 R AMA is one of the most resourced MMDAs How do state earned income tax credits work? >> >> /Contents 80 0 R 8
/ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] >> We have found that this effort has led to a year-over-year increase in municipal revenues of 30 percent. /S /Transparency recommended that the local government should provide basic amenities of high quality. 9
/F1 82 0 R 4. %
Three local government officials were also interviewed. /Resources << Nchuchuwe, F. F. Local government finance in Nigeria in Olojede, I., Fajonyomi, B., & Fatile, J. 3.16.1 Introduction. /Group << There is no one route that cities can or should take to boost revenues. appropriate. 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. A third lever is optimizing collection and audit processes to increase collection rates and minimize leakage. 5
Local governments collected $1.7 trillion of general revenue in 2017. Two Decades in Effect: Volume-Based Waste Fee System in South Korea, Ministry of Environment, South Korea, January 2016. /Meta59 53 0 R 15 0 obj
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Given state and local tax revenuevolatility resulting from the COVID-19 pandemic, and the large amount of federal transfers approved by Congress, particularly as part of the American Rescue Plan, these numbers will probably look different for fiscal years 2020 and 2021, but Census has not yet published that data. >> #$
e-`w6w State and Local Finance Data: Exploring the Census of Governments. /XObject << /Contents [14 0 R 15 0 R 16 0 R] 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. A., & Adewoye, J. O. 92so74oi J. International Business Management, 3(3), 5460. /Image87 74 0 R /Font << How did the TCJA affect tax expenditures? << 0000001743 00000 n
/ProcSet [/PDF /Text /ImageB /ImageC /ImageI] What is the TCJA repatriation tax and how does it work? /Type /Group /ExtGState << OECD fiscal decentralization database (object name Table 12: 1970 2016), OECD, accessed April 15, 2019, oecd.org. Furthermore, technological advancements can aid increased surveillance. How do taxes affect the economy in the short run? 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. the enabling law in form of local government act 1997 (amended). Tax is however, a compulsory levy imposed by government on individuals and companies for various legitimate functions of the state (Olaoye, 2008). All dates in sections about revenue reference the fiscal year unless stated otherwise. endobj 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. What is the Low-Income Housing Tax Credit and how does it work? (2006).
What are the sources of revenue for local governments? Furthermore, the funding that municipalities receive from other government entities is decreasing. /Type /Page Abstract and Figures This paper examines trends in local government revenues and current challenges that local governments face in raising revenue. /CS /DeviceRGB /Image91 75 0 R 8. Revenue generation is the main source of income to the Federal, State and local Governments. What would and would not be taxed under a VAT? What are state balanced budget requirements and how do they work? startxref
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