Assessment on Effective Implementation of Property Tax Systems in Tanzania (The Case of Dodoma Municipal Council)

Wakara Ibrahimu Nyabakora ,Damas Okoth ,Hussein Ngomaitara

doi:10.7176/jaas/61-05

Abstract

The study is based on assessing the effective implementation of property tax system. It is conducted in Dodoma Municipal Council. This study specifically focus on two issues which are to analyze the extent of property tax systems implementation in Tanzania economy, and the property tax systems operating in local government Authorities in Tanzania. The study employs a cross sectional design with a case study meant to get in depth data. Respondents in this study such as property tax collectors like Dodoma Municipal staff, Ward Executive Officers, Village Executive Officers, Mtaa Executive Officers were selected by judgmental selection, and Dodoma Municipality dwellers who in this study are termed as taxpayers were randomly selected.Data gathering has done through multiple methods: interview, questionnaire and literature review. Quantitative data derived from questionnaire were analyzed by means of descriptive statistics while the qualitative data were coded, transcribed, categorized and summarized into relevant emerging themes in relation to the research questions.The findings show that property tax system in Dodoma Municipal Council is not effectively implemented because the council lack updated property register, lack of property valuation, insufficient staffs for valuation, lack of E- Taxation technology and weak property tax administration.Based on the findings, the study recommends that: The council to invest more in property tax administration, Conducting property census, Valuation of the taxable properties, Develop mechanisms to enhance tax collection, Use E-taxation systems in implementation and enforce property tax system. Keywords: Property tax, Implementation, Tax base, Local Authority, Property Rights DOI: 10.7176/JAAS/61-05 Publication date: February 29 th 2020

Highlights

Property taxation is becoming increasingly important within the local government-financing as more and more responsibilities are being devolved from central to local governance units
From interview with Dodoma Municipal officials the findings show that implementation of property taxation in Dodoma Municipal Council involves three interrelated items: property identification, property valuation and assessment, and property tax collection
The study focused on assessing effective implementation of property tax system in Dodoma Municipal Council

Summary

Introduction

Property taxation is becoming increasingly important within the local government-financing as more and more responsibilities are being devolved from central to local governance units. This is because taxes on property are the single most important source of locally raised revenue in many parts of the world and often seen as well suited as reliable revenue for local governments The tax is considered a suitable local source of revenue due to the linkage between the type of services often provided by local government and the enhancement in property values. Expenditure of property tax revenue on such services as fire, police protection, roads, drainage and street lighting results in increased property values within the jurisdiction

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Conclusion