PROPERTY RATE ADMINISTRATION AND LOCAL GOVERNMENT FUNDING: TOWARDS IMPROVING PROPERTY RATE REVENUE IN THE WA MUNICIPALITY

Abstract

The growth of African towns and cities has outpaced local governments’ capacity for service delivery, and this development brings substantial financial challenges in urban governance. This study was conducted to assess how property rate administration can be enhanced to improve local government revenue in the Wa Municipality. It focused on examining the taxation practices of undeveloped land and its potential for revenue generation, re-examining the cost method in determining rateable values, and exploring how public-private partnership can help in property rate administration. An exploratory case study research design was employed involving the use of interviews and a survey of 170 rateable property owners. The study found that there is a guideline on charging rent on undeveloped land. However, WMA has not implemented this guideline. The study also revealed that the cost method is still relevant, provided Assemblies have the resources to undertake valuation. This is because the cost method was found to be expensive in its application. Furthermore, the findings reveal a potential for publicprivate partnership as a good model for improving property rating although the WMA has not used it in the area of property rating. Thus, the following recommendations have been put forward for enhancing property rate administration to improve local government funding. The study recommends a policy review of the taxable object to include land. Therefore, any plot that is not developed but found with the planned area will be liable to undeveloped land tax. The use of an unassessed rate or flat rate should formalized and refined to reflect the values of properties. This can be done by introducing some scientific basis into its usage. Finally, the Assembly should explore public-private partnership for billing and collection of property rate to improve property rate administration.