- Property tax collection and its empirical studies proves that it depends on the level of development of the country and the extent of its fiscal decentralization.
- The degree of fiscal decentralization determines the intensity in the use of property tax handle.
- The level of development. of country is positively correlated with Fiscal decentralization
Failure in tax collection for revenue generation:
- In previous tax collection method, ambiguity in ownership and poor information about records and the properties
- predominance of the informal sector in the market for immovable properties and poor information system
- low capacity, lack of interest in reforms and high cost of tax administration in developing and transitional countries to design and enforce the tax
- Visibility of the tax and its unpopularity with the voters as the benefits received are generally not commensurate with the tax paid, and other forms of properties do not attract a similar tax
- predominance of vested interests and large scale exemptions and concessions
- arbitrary, uncertain and mysterious ways of determining the tax base
- static nature of the tax base and political difficulties in undertaking periodic valuations
- Wide discretion to the tax officers and high compliance cost associated with the tax
- To add the values of additions and improvements to properties to make the tax base responsive to changes in the values of improvements to properties in the tax base.
Reasons for low revenue collection from the property tax:
Low collection of tax is poor coverage and low collection efficiency of property tax. Poor coverage due to,
- Wide ranging exemptions.
- Poor information system and lack of up-to-date registry of land and properties by municipal bodies.
- Existence of vacant properties Exemptions vary from state to state and from one municipal body to another.
- Ambiguity in ownership and tenancy rights and inability to adopt market based valuation are severe constraints in increasing the revenue productivity of the tax
Why Reform Initiatives on property tax in India:
Need to be clarity in the determination of tax base.
Reduce cost of collection and it is for appropriate tax collection.
Improve the ease of tax collection and reduce the compliance cost
In property tax reform mostly area base taxation is chosen
Advantages of it
- Fairness and lower compliance cost
Reforming the property tax system by following ways:
- It includes separate tax powers to urban local bodies.
- State Gov. should provide autonomy to local bodies to levy, collect and appropriate revenues from property tax.
- Inclusion of plot area along with built up area in the tax base.
- There should be an intelligence cell in every property tax department to focus on additions and improvements to properties and getting info on changes in property values.
- Agenda is exploiting large revenue potential to facilitate urban renewal.
- Transition to area base valuation, it reflect market values.
As per previous information we conclude that, urban local bodies need to be autonomous and property tax is important source of revenue generation for it. Property tax reform is important for good revenue generation and GIS is useful in it following ways:
- Mapping of all properties so can possible to levy appropriate tax on them.
- Proper tax calculation increase revenue ultimately.
By using GIS, for local government bodies property tax mapping project can be implemented in following way:
1. Input data collection, mapping and updating the data
- Existing Municipal Council Administrative boundaries map.
- Land sub-division map (cadastral map)
- Existing ward map.
- Existing Development Plan map. This are the input data maps and it is required for mapping and updating tax data.
2. Property survey
- GPS based GIS base survey for each and every properties within Municipal corporation/council boundaries (limits)
- Location of PROPERTY
- Details of owners/ societies
- Survey form filled up of each property
- Existing Status of property
- Comparative Analysis with existing database
- Discrepancy report preparation with various aspects
Then after survey correction in integrated data required. After that validation of whole data in coordination with municipal officers. Finally submission of report
3. Web base application development for project
- Property tax data Integration & Importing from any GIS Data type. (Oracle Spatial to SQL etc.)
- Spatial queries of database in GIS interface.
- Generation various kind of reports required in day to day operations
- Tax calculation module
- Complete tracking of the properties in terms of dues, payments & ownership changes etc.
4. Installation of software and training to government officers
Final step of implementation of property tax management project is Installation of software’s in government officers PC’s and providing training to them on it.
Benefits of GIS base property tax calculation and management of the project:
- It automates all operations of Property Tax department reducing time and efforts required for various processes.
- Improves accuracy of data collected in data center and processed by the department.
- Creates a standard data model for department which could be used as base for future projects and extensions.
- Improves efficiency of the staff with use of GIS & Information Technology and its latest advancements.
- Department can generate various analytical reports quickly, based on information collected causes positive effect on revenues collected.
Property tax management project Benefits to citizen:
- Payments can be made through various means i.e. Online payments which reduces last minute rush at payment collection centers
- Citizens get quick service which improves their satisfaction
- Long queues are avoided due to online facility of payment
- Manual mistakes in bill related calculations are eliminated
- System is more transparent and efficient which results in saving of efforts
- Citizens don’t have to travel to corporation office for their queries and applications