Effect of property tax administration on local government revenue: A case of Rwanda revenue authority in Nyarugenge district, Kigali

Vedaste Mungwarakarama; Victoire Muhayimana

doi:10.51867/ajernet.6.3.83

Authors

Vedaste Mungwarakarama
mvedaste2020@gmail.com
Institut d’Enseignement Superieur de Ruhengeri (INES), Rwanda
Dr. Victoire Muhayimana Institut d’Enseignement Superieur de Ruhengeri (INES), Rwanda https://orcid.org/0000-0002-1424-7288

Keywords:

Character Property Tax, Local Government Revenue, Property Tax Administration, Property Tax Registration, Property Tax Payment, Property Tax Enforcement

Abstract

Property taxes are a common source of revenue for local governments around the world, playing a crucial role in funding essential services and infrastructure. However, the management and implementation of these taxes often face significant challenges, raising questions about their effectiveness. The general objective of this study was to examine the effect of property tax administration on local government revenue in the RRA. The specific objectives of the study were as follows: to examine the effect of the character of property tax on local government revenue at the RRA in Nyarugenge District; to examine the effect of property tax registration on local government revenue at the RRA in Nyarugenge District; to examine the effect of property tax payment on local government revenue at the RRA in Nyarugenge District; and to examine the effect of property tax enforcement on local government revenue at the RRA in Nyarugenge District. The study was guided by Property Theory and Tax Theory and employed a descriptive research design. The study population consisted of 103,985 households and plots of land, and the sample size was 398 individuals. Simple random sampling was used to select respondents. Data were collected through questionnaires and analyzed using descriptive and inferential statistics. findings showed that the character of property tax (M = 3.70, SD = 1.268), property tax registration (M = 3.49, SD = 1.338), property tax payments (M = 3.73, SD = 1.330), and property tax enforcement (M = 3.66, SD = 1.249) each had an effect on local government revenue at the RRA. Moreover, the results indicated a positive relationship and significant effect of the character of property tax (B = 0.145, p = 0.000 < 0.05), property tax registration (B = 0.166, p = 0.000 < 0.05), property tax payments (B = 0.410, p = 0.000 < 0.05), and property tax enforcement (B = 0.228, p = 0.000 < 0.05) on local government revenue at the RRA. In summary, the study concludes that there is a strong and significant relationship between the character of property tax, property tax registration, property tax payments, and property tax enforcement and local government revenue at the RRA in Nyarugenge District. The study suggests that the RRA should optimize property tax registration, compliance, administration, collection processes, enforcement strategies, and fiscal capacity to boost revenue generation. This will lead to increased financial resources for local authorities, improved public services, and enhanced infrastructure development.

Dimensions

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