Boosting the Enforcement and Collection of Property Rates: Learning from the Experiences of Kampala City Council Authority (KCCA)
This study will evaluate the experience of KCCA in the enforcement and collection of property rates with an objective of understanding some of the reasons why the Authority has been more successful than the rest of the urban authorities and local governments (four of these will be studied alongside KCCA). In particular the study will look into the role of ICTs, improved coordination between KCCA and other government agencies and accountability to tax payers in increasing revenue yields from property rates.
That said, even KCCA still has a number of challenges in the enforcement and collection of the tax. (For the last six years property rates account for only 23% of the Authority’s total revenue) As pointed out above, the authority’s capacity to valuate and locate properties subject to rates is still limited. Similarly, there seems to be utter lack of awareness among the tax payers most of whom do not appreciate the difference between rates and other forms of tax such a rental and property taxes. Due to this, there is often resistance and unwillingness to pay on the part of property owners. The law on property rates is also restrictive in a number of ways. In this regard, the study will incorporate a comparative approach involving a detailed analysis of experiences from at least one other urban authority in the East African region.