Expanding Property Tax Base through Regeneration: Nexus between Property Tax and Urban Regeneration

Abstract

This paper examines the adverse effects which slums have on revenue generation through property taxation, with a focus on the Lagos Metropolis. Nigeria is ranked as one of the countries with high slum prevalence. The proliferation of shanty dwellings, squatter settlements and slums in most of our cities in Nigeria is a cause for serious concern. The concept of regeneration is brought forward as a panacea towards curbing the slum formation and expansion process, as well as expanding the property tax base in the process. After a brief look at selected slums in Lagos and property taxation systems, the paper puts forward the idea that through urban regeneration of slums, slum residents experience higher standards of living, with the attendant effect of more money which can be utilized to give properties a face-lift, thereby increasing the ratable value of the properties. With better infrastructure in slum areas, tax assessors are also able to capture more properties in the tax net than, thereby expanding the property tax base resulting in more revenue to the government and with good governance, making more money available for regeneration and the eventual extinction of slums.