Municipal Revenue Research Articles

Powierzchniowy a katastralny system opodatkowania nieruchomości w Polsce

The article explores the economic aspects of area and value-based taxation of Polish real estate. It begins with the presentation of information on the conditions of property taxation in Poland. Next, a review of the research on the cadastral tax is provided, as well as the assumptions of the econometric model used for mass valuation of the analysed real estate. The main part of the article contains the results of the simulation of replacing the property tax with an ad valorem one. Particular attention is given to the impact of the cadastral tax rate on the revenues of municipalities and changes in the tax burden on individual properties. The main aim of this study was to show the importance of the proper setting of the ad valorem tax rate in the process of reforming the property taxation system.

The influence of dissensus on governmentality during competitive tendering: A longitudinal field study

This paper investigates the ways in which dissensus has influenced governmentality during a longitudinal process of competitive tendering of public services. Data are from a field study conducted in the field of public care for the elderly from 2007 to 2015 in Finland. Public elderly care in Finland is under the responsibility of each municipality. Municipalities have local autonomy; including municipal taxation right. In addition to municipal tax revenues, the central government finances each municipality on a per capita basis annually. Every municipality is run by democratically elected local politicians. The elected politicians have the power to appoint leading public managers in charge of each public service sector. Findings showed that political dissensus arose from a lack of appropriate policies of governing for performance during a new and international competitive tendering process. Managerial dissensus arose from a low-level professional experience and a lack of appropriate technologies to deal with highly advanced profit-making companies competing for entry and expansion into a prestigious public elderly care market. In consequence, costs of outsourced services continued to increase. As time passed, however, political and managerial dissensus improved the process of governing for performance; key decision-makers took reactive measures to limit procurement risks in future competitive tendering processes. The potential contribution is to show the relevance of dissensus when it motivates public managers and political decision-makers to improve specific programs, techniques, and strategies used to manage public services

КЛАССИФИКАЦИЯ ФАКТОРОВ, ВЛИЯЮЩИХ НА СБАЛАНСИРОВАННОЕ РАЗВИТИЕ РЕГИОНОВ

The article analyzes the current state of the regional budget balance and considers new approaches. The factors influencing the formation of municipal budget revenues are considered, as well as the classification of budget balance methods is carried out.

Municipal Bonds and their Impact on Project Financing

Municipal bonds are an option available to many cities to rise long-term financing to finance the infrastructure projects. This study aims to develop and find local measures of creditworthiness that are suitable and applicable for local government units in Kurdistan Region of Iraq. Different variables are recognized to see the effect on the issuance of municipal bonds, macroeconomic variables measured by revenues and expenditures per capita, cost of capital, and unemployment rate. Municipal status variables have subgroup variables of municipality size, financial reporting quality, outstanding debt, and financial distress. Various financial ratios, comparative and cross-sectional analysis, horizontal and vertical analysis were used. These ratios and analysis have been used to determine the municipal status variable. The results of the study were limited to the largest 3 sample municipalities; each is the central local government unit at the governorates and was not generalized for all municipalities in Kurdistan Region. The study found that macroeconomic and municipality status affects the issuance of municipal revenue bonds. Based on the study results, municipal bonds are highly recommended. Also, instructions from the Ministry of Local Government need to be established and to enforce municipalities about the declaration date of publishing audited financial statements.

What the Great Recession Revealed About Taxation by Citation and What Can Be Done About It

In recent years, the issue of “taxation by citation” has grown in national prominence. It is generally defined as municipal revenue generation through fines and fees that transcends a clear relationship to public health and safety and serves more as a revenue generating device. According to critics, taxation by citation creates conflicts of interest, violates the rights of those with low income, and distorts law enforcement priorities. Municipal leaders reject such criticisms by denying taxation by citation even exists. To date, research findings have been mixed on whether cities practice taxation by citation. This Article examines whether there is a relationship between fines and fees revenue generation and broader economic trends. If there is a relationship, that would suggest cities do, indeed, use municipal ordinance enforcement and the resulting fines and fees as a means of revenue generation beyond public health and safety. We use a panel of 1,471 cities from the Census of Governments spanning 2005 through 2017, which captures the Great Recession of 2008. Fixed-effects regression analyses indicate a significant relationship between the fines and fees revenue trend and the Great Recession. We conclude by recommending legal reforms to eliminate the financial incentives to engage in taxation by citation. These include eliminating municipal courts, capping the revenue cities may retain from ordinance enforcement, and ensuring judicial independence from municipal executive and legislative branches.

Revenues of Municipalities as a Tool of Local Self-Government Development (Comparative Study)

A municipality’s budget is a tool that significantly affects the long-term economic potential of the area. In addition, it is an important tool for the management of the municipality, in relation to the effective provision of public services for inhabitants. To ensure them, it uses the revenues that the local self-government receives from various sources. The aim of the paper is to characterize and to compare the mechanism of creating revenues of the local self-government in the Slovak and Czech Republic and, at the same time, to analyze the relationships between individual groups of local revenues in the time period 2009–2018. We analyzed the basic groups of municipal revenues: total revenues, current revenues, and capital revenues. For the analysis, we used selected mathematical–statistical methods (trend lines, correlation coefficient). Although both countries were part of one country, both have a dual model of public administration and have undergone fiscal decentralization; the structure and sources of local self-government revenues are different. However, a common attribute is the dependence of local self-government on state revenues. Tax revenues are the most important part of current budget revenues. Despite fiscal decentralization, local budget revenues are dependent on the state. In the Slovak Republic, share taxes from the state represent 74% of the total tax revenues of municipalities, and in the Czech Republic, 85% of the total tax revenues of municipalities.

Developing Organization and Management of Municipal Revenues in the Russian Federation

Budget revenues of public-legal institutions form the financial base providing bodies of state power and local selfgovernance with cash necessary to perform their authorities on organizing overall development of economic and social spheres of territories. The article studies conditions of shaping budget revenue of municipal bodies and analyzes difficulties of municipal budget filling in view of national legislation. Problems in municipal administration work are shown, which are envisaged by the absence of stimuli to effective and efficient functioning of municipal clerks. Practices of participation (people’s) budgeting are described and the impact of this tool on budget revenue shaping is estimated. The article demonstrates possibilities of concession agreements and contracts of state-private partnership, which can decrease the burden on the municipal budget connected with projects dealing with repair and reconstruction of property. On the basis of materials studied by methods of comparative analysis, structural and dynamic analysis of local budget revenues, critical analysis, method of searching for new scientific categories and concepts, logical and deductive methods recommendations were worked out on issues of regulating the missing revenues (tax expenses) and introduction of digital technologies of tax administration.

INCOME STRUCTURE OF COMMUNES OF THE ŚWIĘTOKRZYSKIE VOIVODSHIP IN 2009-2018

The issue of this paper concerns the income of municipalities and their structures. The research topic is not a new issue, it has been raised in the literature. However, it is justified to take up this subject due to the dynamics of this phenomenon and outdated research results. Undertaking the subject matter is also justified by the variable economic situation affecting the achieved revenues of municipalities. The article aims to analyze the income structure of communes in the Świętokrzyskie Province. The author will also refer to changes in the structure of income, the dominant categories of income over the decade under review. When reading the literature, no similar research was found covering the Świętokrzyskie region. The analysis was based on data from the Local Data Bank regarding municipalities in the Świętokrzyskie Province. The formatted databases included municipal incomes divided by a source. During the study, all municipalities from the Świętokrzyskie Province were taken into account, along with Kielce – a city with poviat status. In total 102 units were included in the study. The research period covered the years 2009-2018 and resulted from the availability of statistical data and a correspondingly long period of analysis. While discussing the phenomenon, data on individual years were used, and the average share of a given category in the period under consideration was determined. Due to the attention paid to the structure of income at work, the data was presented as a percentage. The obtained data, expressed in terms of value, was developed by transforming it into a percentage share. The average values for the research period were determined by taking the average value from the sum of values of individual years. The author does not refer to data other than the accepted one, instead he focuses on analyzing changes in the structure. Differentiation of particular categories of income is visible. Comparing the data at the country and region level, the deviations are not large. However, by looking at the data of individual units, one can see their diversity under this account. Despite the presentation in the main three areas (own revenues, subsidies and general subsidy) of their detailed elements, large differences in the share between individual taxes and subsidies can be seen. The average income structure in communes in the Świętokrzyskie voivodship does not differ significantly from the national trend. In communes with the highest share of own revenues, their amount is determined by property tax. The structure presented in this way, its diversity in the Świętokrzyskie region is a premise for comparing the analyzed data on individual municipalities with indicators from other areas.

Determinants of Urban Land Lease Market in an Emerging Economy: Empirical Evidence from Ethiopia

Purpose: The ultimate objective of the study is to examine the determinants of the urban land lease market in an emerging economy with empirical evidence from Ethiopia. Design/Methodology/Approach: A nomothetic methodology with a standardized and quantitative method of data analysis was adopted for this study. The data was gathered from the Mekelle municipality between 2014-2019. The data was analyzed using the pooled ordinary least square technique. The model produced robust relationships and consistent results with previous studies. Findings: The study found both supply and demand-driven factors associated with plot markup price. The findings revealed that plot size, payment period, monthly income, plots accessible to basic services, plot location, land use type, and land lease auctioned period associated positively and significantly with the urban land lease markup price. Auctioneers paid a premium for plots having a larger size, extended payment period, access to basic services, and specified for residential housing. On the other hand, distance, and plot inaccessible to basic services associated negatively and significantly with the urban land lease markup price. Practical Implication: The rapid urbanization in Ethiopia has generated intensified supply and demand-driven challenges for public policy. Hence, the municipality should enhance infrastructure development across all plot locations and exercise strict control of land speculation to increase municipal revenue, and address supply and demand-driven challenges. Moreover, the municipal government should ensure equitable access to urban land by controlling land speculation. Originality/Value: Several studies that have assessed urban land expansion and administration, however, paid less attention to the urban land lease market. Furthermore, in an economic sense, it is crucial to examine the urban land value determinants from both demand and supply side at a time when less attention has been paid thereto in the literature.

Economic Increase and Concentration of Economics Activities in Secondary Markets in Cotonou: From 2013 to 2016

Accelerating municipal revenues is very important for good decentralization. In Benin, despite the difficulties, the municipality of Cotonou is trying to put in place mechanisms to significantly improve its income. Thus, this research aims to analyze the impact of the concentration of economic activities on the increase in non-revenue taxation in the city of Cotonou specifically on secondary markets from 2013 to 2016. Results from an estimate of an ARDL model show that, in the short term, market rights and revenues from public latrines have a positive impact on non-tax revenues. The effect of place rights on the market is not significant, while revenues from the operation of public latrines have a significant impact on non-tax revenues. In the long term, the study reveals that marketing rights have a positive effect on non-tax revenues, but not in a very significant way. Revenues from the operation of public latrines, on the other hand, still have a positive impact on non-tax revenues. It is therefore urgent to find adequate answers since marketing rights and public infrastructure revenues must be the driving force behind the growth of non-tax revenues and, in turn, total revenues.

Economic Increase and Concentration of Economics Activities in Secondary Markets in Cotonou: From 2013 to 2016

Accelerating municipal revenues is very important for good decentralization. In Benin, despite the difficulties, the municipality of Cotonou is trying to put in place mechanisms to significantly improve its income. Thus, this research aims to analyze the impact of the concentration of economic activities on the increase in non-revenue taxation in the city of Cotonou specifically on secondary markets from 2013 to 2016. Results from an estimate of an ARDL model show that, in the short term, market rights and revenues from public latrines have a positive impact on non-tax revenues. The effect of place rights on the market is not significant, while revenues from the operation of public latrines have a significant impact on non-tax revenues. In the long term, the study reveals that marketing rights have a positive effect on non-tax revenues, but not in a very significant way. Revenues from the operation of public latrines, on the other hand, still have a positive impact on non-tax revenues. It is therefore urgent to find adequate answers since marketing rights and public infrastructure revenues must be the driving force behind the growth of non-tax revenues and, in turn, total revenues.

GESTIÓN PÚBLICA Y EL USO DE LOS INGRESOS MUNICIPALES PARA LA GENERACIÓN DE DESARROLLO LOCAL SUSTENTABLE. CASO DE ESTUDIO DE LAS CIUDADES DE OAXACA, 2000-2017

The article analyzes the cities of Oaxaca, during the period 2000-2017, conducting a study of the relationship between the use of the municipal revenues and sustainable local development, emphasizing the implementation of public management in the local governments. It uses a quantitative methodology through the collection of documented information from government institutions, and subsequently designing a database. For the verification of the hypothesis proposed, they are applied descriptive and statistical methods and regression, they show a high association between the analyzed variables and therefor, they are considered sources of information for proposal of public policies with a localist vision aimed at strengthening local governments.

Use of Green Resources and Designing of Public Spaces: the case of Nea Ionia City in Greece

This paper examines the case of designing public space through the exploitation of green resources. The public space we meet is a result of both social conditions and institutional framework. In recent years, in many points of Attica, the lack of public spaces is intense. However, where the public space is adequate, it often fails to be used by residents in the best possible way. In this context, the causes of the inactive public space will be examined as well as the spatial dimension of the problem in conjunction with the socio-economic and cultural mutations taking place. The main reason for which the public space is not successfully used is basically the lack of financial resources. These resources will be studied as to whether they can derive from the use of green taxes that a Municipality may receive in order to spend on better use of public space. The Municipality of Nea Ionia will be selected as an example of public urban space. What characterizes the area over time is its revitalization through restrictive actions and works. The Municipality has been affected like all other Municipalities of Attica due to the economic crisis and needs rejuvenation actions in terms of utilization of existing public spaces. At the same time, the aforesaid Municipality has the guarantees to develop as long as it has all the necessary resources for investment and exploitation. The above represent the main reasons for investigating the issue of gaps - without the operation of public spaces. Initially, an analysis of the issue of public urban space in Attica will be undertaken by presenting the most important events that have defined its role and its presence. These are socio-economic mutations which, in relation to the institutional framework, functioned catalytically in shaping the public space. Then a spatial and historical analysis of Nea Ionia is carried out with regard to its location and its form. It presents the framework of its design, the actions taken by public bodies, studies that have been carried out as well as architectural competitions. Subsequently, the emphasis is placed on its current spatial reality through the use of buildings and pedestrian movements when crossing it. It will still be a reference to the green taxes the municipality receives and how it can use them. In order to illustrate the current image of the Municipality, a field survey will be carried out in which the uses in the area will be captured. The issue relating to the Municipality with the public spaces of other Municipalities will also be approached from the point of view of spatial neighboring as well as the functional disintegration. The question arises as to who are the users and how they experience this public space in their everyday lives. In the text of its completion, reference will be made to the predominant discourse and the upcoming regeneration of the area based on the Municipality's revenue resulting from green taxes.

ТЕОРИЯ И ПРАКТИКА НАЛОГОВОГО РЕГУЛИРОВАНИЯ МУНИЦИПАЛИТЕТОВ РОССИИ (НА ПРИМЕРЕ НИЖЕГОРОДСКОЙ ОБЛАСТИ)

Taxes play a huge role in the life of municipalities, as they ensure the profitability of budgets and the possibility of financing social expenditures. Despite the relative independence of the country's local budgets, the composition of tax revenues is regulated at the Federal level by the country's Budget and Tax codes and a number of Federal laws and Regulations. In General, tax revenues of municipalities of the Russian Federation include mandatory payments of legal entities and individuals to the budget,which include: part of the tax on personal income; tax levied by the USNO; part of excise taxes on gasoline, diesel fuel, motor oils; property and land taxes. While most municipalities granted the rights to administer tax payments within education, is clearly insufficient, as evidenced by endemic deficit of local budgets of the Russian Federation, indicating the ineffectiveness of taxregulation of municipalities. The purpose of this article is to identify problems of regulation of municipalities in Russia(for example, the Nizhny Novgorod region) and develop ways to address them.

Overheads as a Performance Indicator in the Local Public Sector Organizations

If we consider business forms from the point of view of satisfying needs, public companies are consumer companies that satisfy collective needs with the aim of redistributing income. They differ from production companies in that they do not have direct access to the market, so that the sources of financing derive from the taxes imposed by law, while the uses concern management costs, capital investments and debt repayments. Maintaining this interpretation, another category belonging to consumer companies is that of non-profit companies, which can be equated partially to public companies precisely because of the absence of a real market of reference and the finding of sources of funding for the performance of the activity mainly from external contributions without consideration. The only difference is inherent in the fact that such contributions cannot be imposed by law and are aimed at assisting and providing services and benefits to the community of reference, in the absence of profit and capital distribution. Therefore, if in the public sector performance is mainly and historically linked to the management of financial resources and public debt, in the field of nonprofit there is a different literature focused more on the control of economic aspects (and in particular the costs of the activity) as performance indicators of the company's activity. At the international level, and in particular in the United States, the use of the incidence of overheads is an element of examination to assess the performance of the non-profit sector. In this article, the subject of analysis is the possibility of using the overhead level to assess the performance of a public body. The analysis is carried out by comparing the incidence of overheads on the revenues of Italian municipalities in the years 2015-2017 with the performance indicators given by the deficit parameters established by current administrative legislation. From this analysis, it is possible to identify the presence of a correlation between the performance indicators and the incidence of overheads, in which the likelihood of the presence of “good”, “excellent” or “excellent” indicators is given by levels of overhead in the region of 10% of the total revenue assessed, with a margin of tolerance of 3% in positive for smaller entities (up to 5,000 inhabitants), and 3% in negative for larger entities.

Belediyelerin İlan ve Reklam Vergisi Uygulamaları Üzerine Bir Değerlendirme

Announcement and Advertisement Tax is a municipal revenue but also it has an extra-fiscal purpose which is decreasing the density of signboards in the city. There has been not a separate article in the literature analyzing the dual functions, the subject, the coverage and tariff, the share in the municipal revenue, the division of collection authority between the district municipality and the metropolitan municipality in the metropolitan area of the Announcement and Advertisement Tax. These issues are analyzed via review of the regulations, court orders and budget realizations of the municipalities. Therefore, the problems arising in practice are determined. Consequently, several suggestions developed such as tariffs and taxable events should be updated, municipalities should have the power to determine the tariff, and the district municipality should be the collection authority in the metropolitan area.

AUDIT OF INCOME FROM LOCAL FEES IN SELECTED COMMUNES OF THE POMERANIAN PROVINCE IN POLAND

The article presents the importance of auditing the assessment of a commune's budget revenues for tourist fees (local fee or spa fee) as a tool enabling its increase by the commune authorized to impose it. The purpose of this article is to present on the basis of selected coastal municipalities of the Pomeranian Voivodeship in Poland, the role and significance of the audit of the assessment of income to the municipal budget in terms of local and spa fees. The article uses case study, analytical method, inference method and document examination method as the research methodology. The source materials for the analysis were documents made available on the pages of the Public Information Bulletin by the assessed local government units from the Pomeranian Voivodeship (reports on the implementation of the budget and Rb-27s reports containing information on revenue for the year). The local and spa fees constitute a small share in the total income of the budgets of the surveyed municipalities. The key factor improving the revenues of municipalities from local and spa fees is the improvement of their collection system. The risk of inefficient collection of fees by those who collect them from tourists is a threat to effective collection of the fees. Therefore, individual communes should improve the supervision system and control of toll collection by hotel service providers.

IDENTIFICATION OF PROBLEMS OF FINANCIAL AUTONOMY IN LITHUANIAN RURAL MUNICIPALITIES

The scientific problem addressed by the article is the lack of the ways for identification and solution of the issues of financial autonomy in rural municipalities. The aim of the article is to identify the problem areas of financial autonomy in Lithuanian rural municipalities. The problem areas of financial autonomy in rural municipalities have been identified under the methods of scientific literature analysis, document analysis, and statistical data analysis, and comparative analysis. The problematics of definition of the phenomenon of financial autonomy of rural municipalities has been noticed; problem areas of expenditure, revenue, financial transfers and borrowing in the municipalities have been identified. The empirical study of the data on 50 Lithuanian rural municipalities reflecting their respective financial autonomy in the period 2014-2018 (municipality revenue structure, revenue per capita, the dynamics of the share of the personal income tax (PIT)) revealed that the major share of the revenues of rural municipalities is collected by means of the PIT. There are four donor municipalities in Lithuania – Vilnius city, Kaunas city, Klaipėda city and Neringa municipalities – with their PITs used to support rural municipalities. The central authorities of Lithuania apply inter-budgetary reallocation of funds in order to introduce the financial equalization measures to adjust for the unequal allocation of potential financial resources between the municipalities with the ultimate objective of eliminating the territorial, social and economic disparities between the municipalities. However, the revenue and expenditure remain unequalized between the municipalities.

Fiscal Decentralization in Somaliland: Challenges and the Way Out

After regaining its independence, Somaliland made a unitary system of governance in which the constitution establishes central government with regional and local governments. where Local governments provide basic services as per their capacity. The number of districts, their hierarchy, and boundaries were to be [and are still to be] defined by law. Donors and UN Agencies introduced Joint Program for Local Governance and Decentralization (JPLG) which has been operational in Somaliland since 2008, supporting decentralization. Nonetheless, decentralization efforts in Somaliland, particularly those pertaining to fiscal affairs face many challenges. The main aim of this study is to explore key fiscal decentralization challenges and available options for a better fiscal decentralization system. There is unnecessary increase of districts based on tribal political motivations many of them with limited taxable economic base and their dependency on electoral districts in elections. Subsidy allocations to local governments are not based on assessed physical and socioeconomic factors and have not been predictable nor fairly distributed. Districts with custom posts receive municipal tax revenue which raises local government budget over comparable districts. unless addressed with equalization funds such budget inequality among local governments in the process of decentralization will have a negative disparity in the services provided and livelihoods among districts. Other challenges include poor legal framework and limited institutional capacity. However, Somaliland should rethink the type of decentralization to adopt, review policies and regulatory frameworks applied to subnational governments to reflect best practices . Key Words ; Fiscal Decentralization, Somaliland, local governments/districts. DOI: 10.7176/PPAR/10-6-09 Publication date: June 30th 2020

How attractive are municipal bonds for the passive competitiveness: the case of immunization of municipal bonds

Purpose This paper study regional attractiveness through passive portfolio investment based on duration, immunization and convexity (in case of higher interest rate volatility) of municipal bonds by using data from Standard and Poor’s. The massive variety of financial incentives to promote regional investment attractiveness is dependent on governmental strategy. Municipal bonds are the one of the most efficient ways of direct investments in the region, however, it is still a question of a good balance between a certain rate of return and an adequate risk. The purpose of this paper is to analyze the investment opportunities in municipal revenue bonds. Design/methodology/approach This study developed a model of investing using municipal bonds with the case of their immunization and analyze attractiveness of such investment. The theoretical model assumes a situation where the local government finances its capital projects through municipal revenue bonds. Such situations influence strongly on regional or local competitiveness provided by local government policy. Findings An analysis of the municipal bond market indicates that both municipal general and revenue bonds had stable and good level of yields to maturity in the past ten years. Their standard deviations were very low and in the past two years almost approached the level of standard deviations of treasury bonds. With the duration of 4–6 years on 5-year investment in municipal revenue bonds and their immunization, it is possible to provide good returns for investor. Research limitations/implications The limitation of this study concerns theoretical situation where local government will use non-market-based policy to reduce the interest rates and that will influence on rise of municipal bond liquidity premium (price distortion). This situation will make municipality bonds less attractive for investing, especially because of lower liquidity on secondary market. Also, this model is applicable in regions that have developed financial markets. Practical implications This research suggests governments a sustainable framework to use municipal bonds as a strategy for capital targeting in regions. Social implications This research is related to professional investors’ strategy with projects that have the highest investment potential; this is good way for an adequate allocation of resources (regional competitiveness). Originality/value This paper analyzes very rare subject involving local government strategy of finance and portfolio investment in municipal bonds. There is a huge gap in the literature on this issue. Also, this study provides the model that can be used as a case for higher local competitiveness.