Assessing the Impact of Residents Attitude on the Administration of Property tax in Ibadan North East local government of Oyo State Nigeria.

Abstract

Absract Purpose - Property taxation is a totality process that takes cognisance of tax payers and tax administrators. However the payment of the assessed value for tax purpose lies on the resident of the properties and the attitudinal posture like preferences for a form of property tax like land, building or land and building by the resident couple with ability and willingness to pay. The problem however lies in the ability of the tax levied to meet the purpose of meeting the residents’ needs through a workable public policy. Residents’ preference, ability to pay and willingness to also pay any form of property taxation is expected to drive the public policy for property tax administration. Design Methodology/Approach - Ibadan North local government was purposely selected as the study area because of its long standing administration of property taxation in its jurisdiction and ease of assessing data on property taxation. Bar chart was used to indicate preference for a form a property tax either to pay tax on land only, building only or land and building in different locations within the study area. General Linear Model (Multivariate analysis) was used to analyse issues that will convey the attitudinal behaviour of the residents to payment of property tax. Findings - Findings of the study reveals that 45% of the residents prefer to be taxed on land and Building as a single entity and from the multivariate analysis, at significance level of 0.022, resident indicate willingness to move out of the jurisdiction if the taxes are reviewed upward. Practical Implications - In essence based on the preferences for land and building the attitude to upward review of property tax by local authorities is for the residents who the payers to show displeasure by shifting location (residency) to another suitable local government with better option. Originality/Value - The study identified the need to formulate a policy and also provided a policy framework that will link property tax payment by resident to infrastructure to be used by resident to enhance transparency in property tax administration in the study area.