Assessing the effectiveness of the complaint handling process on the compliance level of property rate payers case study: Nabweru Division

Abstract

Taxes on the value land and property can offer a significant source of funding for cities to provide local services and to tap into financing for larger investments (Lamberton, 2017). The objectives of the study were; to find out the nature and extent of rating complaints, to determine the level of property tax compliance and to establish the Property rates compliance challenges. To achieve the above objectives, the research was conducted as a case study research design because of the need for in-depth study, analysis and understanding of the topic in the case study area. The study used a sample of 98 respondents and simple random sampling and purposive sampling were used in selection of the respondents to the study. The data was collected by using questionnaires and interview guides for Key Informants. It was coded and entered in the Computer and cleaned, checked and statistically analyzed using the Statistical Package for Social Scientists (SPSS) software package and excel. The study found out that; approximately 80% of the respondents identified over valuation as the most reported complaint, uncoordinated property details, behavior of tax collectors, wrong property declaration, claims of double taxation were also presented to be among the feasible complaints. Service delivery was reported as the major contributor of property tax compliance, enforcement mechanisms, administration issues, relationship management, and tax moral were also key determinants of property rate compliance. The cost of tax payment property owners face was noted as the most important determinant of compliance. It was also determined that the overall average compliance across the whole division is 65%. Most people in this case study were ignorant of the complaint handling process. However it was found out that awareness reduces the problem of miss information, lowers the cost of compliance, increases the tax payment morale hence ease of enforcement. It was found out that service delivery does not match tax collected, errors in valuation, limited credibility of enforcement measures and high cost of compliance presented the highest challenges to the property rates compliance. It can be concluded that low level of compliance is as a result of low level of awareness and high level of ignorance about the complaint handling process. Therefore the study recommended Provision of Improved Public Services, Capacity building, Mobilization of Political Support and use of Integrated Computer Assisted Property Rates Administration System.