Municipal Revenue Research Articles

Food justice accompaniment research: theory and social praxis in West Virginia

Over the past three decades West Virginians have experienced a deepening economic crisis. Divestment in coal and manufacturing has resulted in widespread unemployment, state, county and municipal revenue losses, and cascading effects on social services, households, livelihoods and community life. For 10 years, FJL has conducted ethnographic research, coordinated cooperative experiments, and built pedagogical tools to democratize knowledge about West Virginia’s food system amidst this crisis. Working in a so-called red state, we have fostered conversations about food justice with rural, often socially conservative communities, and have worked to raise up human resources for meaningful community-led food justice organizing in Central Appalachia. In this paper, we consider the long accompaniment process with community partners and the effects of this experience on the evolution of research questions and actions.

Revenue and Expenditure Base of Municipalities at Gandaki Province

The funding scheme from federal and provincial government had a positive impact on equity through the formula funding scheme. However, property taxes; house and land tax; house and land rent tax; business tax; rental or lease tax; parking fees; herbs, scraps, wildlife tax and service charges are the main sources of income of municipalities. An efficient revenue base allows local governments to provide reasonably efficient services to their people. By considering this issue, the study served primarily as a quantitative study. Using a descriptive and causal comparative study design, expert opinions on key indicators of income and expenditure, and their relative importance for assessing the financial health of the municipal unit and collect opinions on actions that should be taken to improve through Key Informant Interviews (KII) checklists. The main informants were municipal executive-level officials or elected authorities. A checklist was prepared for KII instruction by considering existing literature and consulting the experts of the related field. Out of the 85 municipalities, 27 municipalities were selected as sampling units. The sample represents approximately 32% of the population. The secondary data required for the study was collected from the Annual Reports and Audit Reports of sample municipalities of the office of the auditor general. Federal and state grants play an important role in supporting local government spending. Overall, local governments have found themselves gradually strengthening their income and expenditure bases to improve their financial viability, putting them on the path to financially sustainable development.

Inequality of household income in urban and rural territories of Russia

The article studies the differentiation of per capita incomes of urban and rural areas of Russia, as well as the share of social payments in household incomes. The regions of the Ural Federal District with different specializations of the economy are taken as the object of the study; official data of the Russian Statistical Office on municipal revenues are used. The study showed that there is a huge gap in per capita income both between the urban areas of the regions of the Ural Federal District (by 4.71 times), and even more between rural areas (by 19.27 times). The largest share of social payments in household income is observed in rural areas of the southern regions (about 45%), in urban areas it is somewhat less (20-30%). The specifics of the development of the northern regions predetermined the excess of per capita rural income over urban areas, in the Yamalo-Nenets Autonomous Okrug, by two times, and the share of social payments in income is insignificant in these regions. The calculations carried out by the authors showed that the average payments of social benefits in the regions of the Ural Federal District do not differ so significantly, from 83.8 (urban areas of the Tyumen region) to 136.2 thousand rubles per year (rural areas of Yamal). Therefore, the share of social payments in household income depends not so much on their amount, but on the level of other incomes of residents.

EXAMINING CITIZEN AWARENESS OF DECENTRALIZATION AND LOCAL FINANCES THROUGH SURVEY METHODOLOGY

The issue of decentralization is currently of great importance in Bulgaria. It is related to a number of reforms in local self-government, which require broad public consent. This consent should be derived or obtained after conducting a large-scale information campaign to acquaint the Bulgarian public with the administrative, political and financial framework of the local government. The purpose of this paper is to investigate the awareness of the local community on some key topics in the area of municipal revenue. The main method used is the survey method. The obtained results show that the local community has not reached this level of awareness, which would provide a solid basis for civil participation in the local self-government reform process. The conclusion to be drawn is that the state authority must conduct large-scale information campaigns and organize discussions on the issues of decentralization.

Municipal Own-Source Revenues in Times of the COVID-19 Pandemic

Own-source revenues represent one of the most important funding sources for municipalities in Poland. Such revenues cover all types of municipal receipts excluding subsidies and special purpose grants from the state budget. The purpose of the article was to assess the impact of the COVID-19 pandemic on municipal own-source revenues in the period 2020-2021. A comparative analysis method was used to assess this impact. The analyses were based on the revenue figures for 2020- -2021 (planned and received) as well as the figures for the year preceding the pandemic, i.e. 2019. The aggregate figures available on www.mf.gov.pl – reports on the implementation of local government budgets – constituted the main source of data. The conducted analysis showed that the first year of the pandemic was better than expected in terms of municipalities, as municipal revenues increased in Poland during this period. This resulted from the funding from the Central Governmental Fund for Local Investments (CGFLI) and qualifying these funds as own-source revenues. Rural municipalities benefited the most in this case. The scale of lost revenues as a result of fiscal power instruments applied by the municipalities was not significant.

Effect of transparency on municipal revenues and expenditures in Spain

Effect of transparency on municipal revenues and expenditures in Spain

Local revenue generation system: Its contribution to the development of the Municipality of Bacolod, Lanao del Norte

This study was designed to ascertain the concept of revenue generation system of Bacolod, Lanao del Norte, through the completely enumerated elected officials and permanent employees sample respondents. The pertinent data were obtained through the use of a structured questionnaire and with the help of key informants. The study utilized a cross-sectional survey design to analyze and interpret the data using frequency counts, percentage distributions, and a weighted mean. For the major findings, the local revenue generation of the municipality has increased by roughly 73.52% from 2016 to 2018. Administrative activities help the municipality cope with development, namely the issuance of ordinances, personnel augmentation, and collection strategies. Moreover, respondents were undecided about whether revenue generation contributed to infrastructure and purchases of assets. The majority of the respondents agreed that the municipality’s local revenue generation contributes to the social welfare of its constituents. However, the respondents disagreed that locally generated revenue augments the 20% development fund. The study revealed that there is a big difference between the 2018 and 2020 Real Property Tax (RPT) collection. No committee was created to monitor and supervise the municipal revenue generation system. The municipality, through its partnership with TESDA, provides skilled-job opportunities to its constituents and participants.

An Analysis of South Africa's Provision of Emergency Water Supply During the Covid-19 Pandemic: Accountability and Expiration

The COVID-19 pandemic has illuminated the widespread lack of access to adequate water and sanitation in South African informal settlements and rural areas. While the full complexities of the relationship between inequality, COVID-19 and water in South Africa are still unfolding, the importance of access to water emerged early on in the pandemic, and catalysed an emergency response from the Department of Water and Sanitation (DWS). This article analyses the impact of the DWS' COVID-19 response in three ways. Firstly, the available data on the provision of tanks and tankers is examined to highlight the importance of a reliable monitoring system. Secondly, the dangers of prioritising short-term action at the expense of long-term sustainability are discussed with reference to the twin challenges of further reduced municipal revenue and redirected funds. Thirdly, the implications of a future cessation of emergency water supply is considered. This analysis provides evidence and perspectives to guide the post-COVID-19 transition from emergency to routine water services provision, and distils lessons which might be applied to the approaching challenge of water services provision in the context of climate change.

An Analysis of South Africa's Provision of Emergency Water Supply During the Covid-19 Pandemic: Accountability and Expiration

The COVID-19 pandemic has illuminated the widespread lack of access to adequate water and sanitation in South African informal settlements and rural areas. While the full complexities of the relationship between inequality, COVID-19 and water in South Africa are still unfolding, the importance of access to water emerged early on in the pandemic, and catalysed an emergency response from the Department of Water and Sanitation (DWS). This article analyses the impact of the DWS' COVID-19 response in three ways. Firstly, the available data on the provision of tanks and tankers is examined to highlight the importance of a reliable monitoring system. Secondly, the dangers of prioritising short-term action at the expense of long-term sustainability are discussed with reference to the twin challenges of further reduced municipal revenue and redirected funds. Thirdly, the implications of a future cessation of emergency water supply is considered. This analysis provides evidence and perspectives to guide the post-COVID-19 transition from emergency to routine water services provision, and distils lessons which might be applied to the approaching challenge of water services provision in the context of climate change.

Home rule and municipal revenue stability: New evidence from Texas

AbstractScholars have long debated whether home rule powers help improve municipal financial well‐being; however, a consensus has yet to be reached. This study advances the home rule literature by causally estimating the impact of home rule in Texas on municipal revenue stability. To accomplish this, we employed a difference‐in‐differences estimator coupled with event‐study specifications on a 40‐year‐long panel data set. This approach revealed strong empirical evidence that cities adopting a home rule charter had a significant reduction in the probability of experiencing revenue decline. This finding remained robust with multiple measures of revenue change, an alternative sample, and different model specifications. Moreover, we found that home rule cities’ revenue stability was likely to come from their increase in property taxes.

EFEKTIVITAS PAJAK RESTORAN DALAM UPAYA MENINGKATKAN PENDAPATAN ASLI DAERAH PADA KABUPATEN MAGELANG Tahun 2010-2020

This study was done to determine the impact of the restaurant tax on Magelang Regency's local revenues. In 2010-2020, the descriptive quantitative approach is utilized to analyze restaurant tax target data, restaurant tax revenue realization data, and local revenue realization data. The research data consist of primary data in the form of notes on financial records and secondary data collected from BPPKAD Magelang Regency via observation, interviews, and documentation. The analysis reveals that the amount of efficacy of restaurant tax realization in 2010-2020 fluctuates significantly, with the maximum level of effectiveness occurring in 2014 at 148.49 percent. 2011 was the year with the lowest restaurant tax effectiveness, at 96.75 percent. The 2019 fiscal year had the biggest contribution to municipal revenue from restaurant tax at 4.54 percent, while the 2010 fiscal year had the lowest contribution at 1.92 percent.

Pajak Daerah, Lain-Lain PAD yang Sah, dan Belanja Modal: Bukti Empiris Provinsi Sumatera Selatan

This study aims to investigate the impact of local taxes and other legal municipal revenue on capital expenditures. The research population includes seventeen regencies/cities in the province of South Sumatra from 2015- 2019. Using the purposive sampling method, ten districts/cities were chosen as research samples. The Directorate General of Fiscal Balance (DJPK) website provided secondary data for Regency/City Budget Realization Reports. Multiple regression was employed in the data analysis, which was done with the SPSS program. The findings of the study show that local taxes have a significant impact on capital expenditures, other legitimate regional original income has a significant impact on capital expenditures, and both local taxes and other legitimate regional original income influence capital expenditures at the same time. According to this report, district/city governments in South Sumatra should improve regional income even more. Expanding economic streams and establishing self-sufficiency are required to achieve independence.

How does local autonomy shape the revenues of small municipalities? Evidence from Illinois home rule municipalities

Although long governed by “Dillon’s Rule” that makes localities a “creature” of the state, the U.S. municipalities have always desired some degree of local autonomy. One of the ways in which states grant autonomy to local governments is through a designation of “home rule.” Most prior studies of the effects of home rule on local governance have focused on relating large municipalities. This article explores the effect of adopting home rule on small municipalities by looking at municipalities’ revenues. Focusing on Illinois municipalities, this article conducts a fuzzy regression discontinuity design to provide causal evidence. The empirical evidence shows that the adoption of home rule has a positive and statistically significant impact on the level of total own-source revenue, especially for local sales taxes and other taxes, but it has limited influence on property taxes. In addition, while home rule significantly increases revenue diversification for small municipalities, it has little influence on revenue stability.

Municipal Revenue Determinants in the South-Eastern European Economy: Evidence from North Macedonia

Municipal Revenue Determinants in the South-Eastern European Economy: Evidence from North Macedonia

Prawo administracyjne w czasach stale zmieniającego się środowiska regulacyjnego

The Hungarian administrative law has been significantly impacted by the COVID-19 pandemic. Several rules – which were introduced during the state of danger based on the epidemic situation – have been incorporated into the Hungarian legal system. The administrative procedural law has been influenced by the epidemic transformation. However, the rules on e-administration have not been reformed significantly (due to the digitalisation reforms of the last years), but the rules on administrative licenses and permissions have been amended. The priority of the general Code on Administrative Procedure has been weakened: a new, simplified procedure and regime have been introduced. The results of these reforms became obvious in 2021: the number of administrative cases has been decreased. Even the decision-making of the central government bodies has been transformed partially, a trend of “militarisation” can be observed, as well. The local self-governance has been impacted by the reforms. The transformation has had two opposite trends. On the one hand, the Hungarian administrative system became more centralised during the last year: municipal revenues and task performance have been partly centralised. The Hungarian municipal system has been concentrated, as well. On the other hand, the municipalities could be interpreted as a “trash can” of the Hungarian public administration: they received new, mainly unpopular competences on the restrictions related to the pandemic. This approach transformed in the last months, and even several unpopular decisions were recentralised. Although, these changes have been related to the current epidemic situation, but it seems, that the “legislative background” of the pandemic offered an opportunity to the central government to pass significant and reforms.

Development of urban infrastructure through land-based financing: A case of Bharatpur metropolitan city (Residential area)

Municipalities in Nepal has been seen as a driving force for development, especially after the federal restructuring of the country. Constitution of Nepal, 2015 and the Local Government Operation Act, 2017 have authorized the local government to increase their revenue base from a wide range of sources including the urban land resources to make them financially resourceful for the urban development financing. In this context, land-based financing is seen as a potential source for financing urban infrastructure development in residential areas which lack adequate and decent physical infrastructure. The advantages of infrastructure projects are capitalized on land values which contributes to the land-based finance instruments to pay for infrastructural development. The purpose of this research was to explore how Bharatpur Metropolitan City might fund the construction of urban infrastructure through land-based financing in the residential area lacking adequate and decent infrastructure. Both qualitative and quantitative approaches were used to collect and analysis of existing municipal land-based revenue, land valuation, property registration fees of the case study area, Krishnapur Land Pooling project area, of Ward no 7 of Bharatpur metropolitan city. Building upon the analysis of the capital gain from land value increment and residents’ willingness to pay land-based taxes and users fees in the case study area, the study finds land-based-tax system was limitedly integrated into the land-use zoning and the land value increment. This has resulted in the disparities of tax rates and tax coverages. This study recommends further study to to replace the Housing and Land Tax with Integrated Property Tax system and reform policies related to “property valuation” based on added calculations according to land-use zoning, land use and resident’s willingness to pay as a means to reinforce municipal revenue to increase infrastructure financing in residential areas.

A composite indicator to measure sustainable water use in Portugal: A compromise programming approach

Clean water is an important resource for maintaining human life, economic activities, and ecosystems' survival. Nevertheless, its irregular distribution and occasional scarcity lead to the need to promote its sustainable use. To assess the current situation and the dynamics of sustainable water use, it is crucial to identify the main factors affecting it and to propose monitoring indicators. This paper develops an approach based on compromise programming to analyse water use sustainability at the municipal level, with a methodology that comprise a framework designed in five steps: 1 – indicators' choice; 2 – indicators's weights; 3 – definition of sustainability rankings with the application of a compromise programming approach; 4- application of a GIS analysis; 5 – identification of the main factors affecting sustainable water use. As a first result, the consensus weights of the chosen indicators were defined, indicating that the most important internal factors affecting sustainable water use are safe water, the percentage of housing served by water supply and water distributed by inhabitant. Then sustainability rankings at the municipality level were defined considering these factors. Finally, it was possible to conclude that tourism activity, income level, and young age population have a significant negative effect on sustainable water use, and municipal revenue has a positive effect. Irrigated farming shows a non-significant negative effect on sustainable water use. Population density, elderly population and education level did not show the expected effects on sustainable water use.

Comparative Trend Analysis on Revenue Generation among Selected Municipalities in Surigao Del Sur, FY 2000-2018

This study determined the trends on revenue generation among selected Municipalities in Surigao del Sur for Fiscal Years 2000-2018. It employed a descriptive method of research using Trend Analysis. The study is conducted in selected coastal Municipalities, namely: Bayabas, Marihatag, San Agustin, and Tago. The study found that all municipalities understudy generated revenue from local and external sources. The local sources include the following: Real Property Tax, Business Tax, Other Taxes, Regulatory Fees, Service Charges, and Income from Economic Enterprises. Externally sourced revenues include the Internal Revenue Allotment (IRA), Share from the National Wealth, Grants and Donations, Extraordinary Receipts, Loans and Borrowings and other Local Government Transfers. The study revealed that the difference in revenue of the concerned Municipalities is mainly attributed to their income classification, Tago, a 2nd class Municipality-followed by Marihatag (3rd class), San Agustin (4th class) and Bayabas (5th class). Thus, LGUs concern are encouraged to increase their revenue generation efforts through different strategies. They may focus on improving their Real Property Tax and Business Tax assessment and collection system. They may also engage in various public-private partnership to finance various socio-economic development endeavors, like investing in viable modern economic enterprises. Thus, when revenue increases, LGUs can finance the essential social welfare services that were not prioritized due to inadequacy of resources.

Examining the fiscal impact of tax and expenditure limitations on municipal governments: a rule design approach

ABSTRACT The effect of state fiscal restrictions on local governments is often debatable. While the institutional heterogeneity of such controls is often thought to generate variations in outcomes, more theoretical and empirical attention is imperative. This study aims to address the needs with a particular focus on state-imposed tax and expenditure limitations on municipal governments (municipal TELs), one of the long-standing forms of state pre-emption in the United States. Specifically, it adopts a rule design approach to institutions to capture different institutional designs of municipal TELs, and disentangles their impacts on municipal revenues and expenditures. The results of this study extend the extant literature, suggesting that the fiscal impact of municipal TELs, and more broadly fiscal restrictions, is dependent upon their rule design rather than their presence or stringency.

Explaining Strategies in Setting Own Local Taxes in Slovenia

There are numerous ways for localities to exercise tax powers. However, not all localities utilize their taxing powers. Taxation strategies are numerous and are influenced by the size of local government, the percentage of taxes that the local government takes, share and the local government’s autonomy over taxation. Local governments in Slovenia have some tax autonomy, but local taxes only represent about 13 percent of municipal total tax revenue. This article reviews taxation by local governments in Slovenia as well as some potential reasons for their under-taxing. We can conclude that local governments in Slovenia use local taxes as a fiscal measure and that share of (all) own taxes positively correlate to the size of the municipality. Small municipalities tend to under-tax (or avoid taxing completely), and since equalisation mechanisms do not reward taxation inactivity, the most probable explanation for this practice is closeness to the electorate.