Appraisal of property tax collection systems and compliance: a case study of Kira municipality in Wakiso district.

Abstract

Property taxation is the backbone of local government revenue across the globe. This study sought to appraise the property tax assessment and collection system and the compliance behaviour. Specifically, the study sought to determine the system of property tax valuation used by Kira Municipality in Wakiso District, challenges to implementation of existing property tax valuation system and the extent to which the existing tax collection system in Kira Municipality in Wakiso District deviates or conforms to standard procedures and the law. The study employed a mixed method. A total of 65 property owners were given questionnaires and a few key informant interviews were conducted with the Kira Municipal Rating Office. Findings of the study indicate that majority of the property owners representing 53% are not aware of property rate laws in Kira Municipality. However, knowledge of property rate laws and rate education was found to have a significant relationship with property rate compliance. The study therefore recommends that the municipality should focus on providing property owners with education that helps them to understand the tax system, and the adoption of compliance process that eliminates human interaction and facilitate easy compliance with respect to time and cost.