Source Of Municipal Revenue Research Articles

THE REVENUE SOURCES OF AIZAWL MUNICIPAL CORPORATION: TAX AND NON-TAX

Municipal corporations generate revenue from various sources to fund their operations and provide services to residents. Municipal revenue sources are broadly divided into - Tax and Non-tax revenue. Tax revenue includes property taxes, which is the collected from property owners, based on the assessed value of their properties. Non-tax sources of municipal revenue typically refer to revenue streams that local governments collect apart from taxes, such as, use fees and charges, licences and permits, fees and penalties, grants and find transfers, investment income, etc. Like other municipalities in India, especially, smaller municipalities, Aizawl Municipal Corporation (AMC) is heavily dependent on fund transfers from higher governments such as, the central and state governments. This is basically due to the limited revenue sources available to the Corporation. The AMC received funds primarily, through state tax devolution from the state government as recommended by State Finance Commission. The revenue resources of Aizawl Municipal Corporation include Own Revenues, consisting of Tax Revenues (of which the property tax is a major source) and Non-Tax Revenues such as funds for local bodies, grants and devolution by the State Government, Grants from the Central Government and Finance Commissions and other receipts. Data shows that the contribution of own source revenue is very small, less than one-third of total revenue expenditure in 8 of the last 12 years. The financial resources of the Aizawl Municipal Corporation play a critical role as engines for the growth of local bodies in the state. KEYWORDS: Revenue sources of municipalities, Tax and non-tax revenue of municipal corporations, AMC

Factors Affecting Municipal Revenues and Expenses (Case Study: Tabriz Municipality)

The lack of a comprehensive perspective on municipal revenue sources within the framework of the country's macroeconomic system, alongside occasional interventions and the implementation of self-reliance and self-sufficiency policies for municipalities, has led to instability in the revenue sector of municipalities. The restriction of legal and reasonable avenues for generating municipal income has resulted in a heavy dependence on urban construction and the sale of excess building density. The continuation of this situation has created adverse effects and social, cultural, and infrastructural costs for urban management. Therefore, the present study aims to identify the factors affecting the revenues and expenses of Tabriz Municipality. The research is applied in terms of its purpose and descriptive-analytical based on a survey method using a structural modeling approach for data collection. The statistical population of the study consists of senior, middle, and operational managers, as well as experts from Tabriz Municipality, and a standard questionnaire was used to collect data. The results showed that legal solutions, the role of stakeholder groups (Ministry of Interior), the role of stakeholder groups (private sector), and the adoption of appropriate methods and provision of automated services have a positive and significant impact on the management of municipal revenues and expenses.

Tax Revenues of Local Budgets in Unitary States: a Case Study of Japan

This article discusses municipal self-government in Japan by focusing on tax receipts of local budgets. Revenues and expenditures of local governments of unitary states, such as Japan, roughly corresponds to subnational budgets of federal states. In unitary frameworks, however, local authorities enjoy greater autonomy. In Japan, local governments account for a large share of public spending and tax revenues. Tax re-venues are decentralised and taxes play a significant role in consolidated budget receipts. The centralised system of local administration and finance that evolved in late nineteenth-century Japan was based on arrangements prevailing in Germany at that time. In the second half of the twentieth century, the system of inter-governmental fiscal relations was rebuilt according to the Anglo-Saxon decentralised model, resulting in more autonomy (including tax administration) given to local authorities. The current version of the local public finance in Japan has several salient characteristics and combines both centralisation and decentralisation features. The tax base for the key prefectural and municipal taxes overlaps the tax base for the national income and consumption taxes. The main source of municipal revenue is the property tax. Financial equalisation is achieved through grants, essentially in the form of the local allocation tax (LAT), which is a percentage of national taxes that is channelled to prefectural and municipal budgets. Another important feature of local finance is that municipal governments cover a comparatively large share of expenditures by is-suing local bonds. The reform of local governance and inter-governmental fiscal relations conducted in the early 2000s increased the financial autonomy and tax receipts of municipalities. The reform’s results were positively received by the international community and may be interesting for several transitional and developing economies that are seeking to improve their system of local finance. For citation Pokrovskaia N.V., Belov A.V. Tax Revenues of Local Budgets in Unitary States: a Case Study of Japan. Journal of Tax Reform . 2020;6(1):73–89. DOI: 10.15826/jtr.2020.6.1.076. Article info Received February 14, 2020 ; Revised March 15, 2020 ; Accepted April 8, 2020

Fiscal Fairness as a Political Argument

SummaryGovernments typically apply several tax instruments. The tax choice literature sees the choice among these as depending on the political costs involved. One source of such costs is (horizontal) inequity in the distribution of the tax burden. In this article, we provide the first empirical test of the question whether and to what extent such inequity affects tax choices. Using data on housing sales and tax policy in Flemish municipalities, we create an indicator for the inequity of the local property tax. The latter is levied on the property's assessed rental value, and its inequity is a by‐product of the slow reassessment procedure, leading to a situation in which properties of identical value are taxed very differently. We find clear evidence that municipalities in which property taxation is more inequitable tend to rely less on this tax as a source of municipal revenue.

Staying at Home: The Effect of Proposition 13 on Municipal Revenue Sources

The effects of California's Proposition 13 are far reaching in both California state and municipal government finance. For local governments, who relied most heavily on property taxes to fund infrastructural development and public services, the effects were especially pronounced. Previous findings have indicated that this has caused local governments to substitute away from property taxes towards uncapped revenue sources, such as sales taxes and charges and fees. To better understand the effects of Proposition 13 on local government finance, we leverage a peculiarity in the letter of the law: homes are reassessed upon sale. As such, we test the effects of high homeowner mobility on local government finances. We find that in municipalities with greater mobility have larger proportions of their revenue generated by property taxes, indicating that as more houses are reassessed, local governments are shifting their revenue burdens back towards property taxes.

The Dynamic between Municipal Revenue Sources and the State-Local Relationship in New England

This working paper was written for the New England Public Policy Center’s third annual conference: “The Dynamic between Municipal Revenue Sources and the State-Local Relationship in New England”. It relies on data from the U.S. Census to examine the dynamic between municipal revenues and the state-local relationship in New England. The analysis shows that — compared with the nation as a whole — municipal governments in New England rely very heavily on the property tax. They also have limited or no access to local-option revenues such as sales taxes, and they rely less on fees and other nontax sources. Although some research has shown that the local property tax can help counter fluctuations in state aid, Massachusetts, Rhode Island, and Maine all limit the percent by which local governments may increase their property tax collections from one year to the next. Municipalities in these states are more vulnerable to changes in state aid, and more bound by constraints on other revenue sources.New England states and municipal governments will face enormous fiscal pressures as their populations age dramatically and they face higher pension and health care costs. This analysis suggests the need for policymakers to consider new local revenue sources and state aid formulas.

Devolution, Fiscal Federalism, and Changing Patterns of Municipal Revenues: The Mismatch between Theory and Reality

Devolution, Fiscal Federalism, and Changing Patterns of Municipal Revenues: The Mismatch between Theory and Reality

Does the Median Voter Consume Too Much Water? Analyzing the Redistributive Role of Residential Water Bills

According to allocative efficiency criteria, water in the American West is often underpriced in urban sales. The politicaleconomic process that motivates municipal managers to impose the resulting deadweight losses on their constituencies is analyzed with a median voter model of choice between alternative municipal revenue sources. The implications of this model are tested empirically, and the results confirm the conclusions of previous empirical research by suggesting that cities with more shewed income distributions tend to engage in more redistributive activities than other conditionally similar communities.

Efficient Water Pricing Policies as an Appropriate Municipal Revenue Source

Marginal-cost pricing of municipal water in water-scarce regions is both an efficient way to achieve conservation goals and an efficient revenue source for municipalities. Nevertheless, marginal-cost water pricing is quite unusual and often prohibited, probably because water revenues are perceived to have an unfairly regressive incidence. To examine the validity of this perception, Census data from San Antonio, Texas, is used to estimate the income elasticity of demand for water there. This result and similar estimates elsewhere suggest that the regressivity of water revenues compares favorably with published regressivity estimates for traditional municipal revenue sources. Moreover, a form of two-part water pricing is shown capable of increasing progressivity without inefficiency. Revenue under this pricing regime is flexible, which allows authorities to meet a range of preset revenue targets, trading off neither efficiency nor fairness.

Two Municipal Revenue Sources Contrasted:

Two Municipal Revenue Sources Contrasted: