Mechanisms and Strategies for Mobilisation of Property Rates in the Kassena-Nankana Municipality of Ghana

Abstract

Property rates are important revenue items to local government units all over the world. This is due to the fix nature of its components, which makes it predictable. However, local governments find it difficult to effectively mobilise revenues from this important source. This study thus examined mechanisms and strategies adopted towards mobilisation of property rate, in the specific context of Kassena-Nankana Municipality of Ghana. Adopting a case study, data was collected through interviews with key officials of the Municipality and randomly selected revenue collectors and property owners.  The study revealed that, property valuation was carried out in 2009, which was used to rate items for taxation. Revaluation, which is due every five years by statutory provision, was however not carried out in 2014 due to limited resources and lack of expertise. The study further revealed that, the Municipality employs many mechanisms in order to maximise revenues from the already flawed property rate system. Some of these included instituting a property rate task force; sensitisation of the public through radio discussions and announcements; sanctioning of tax defaulters; regular training of revenue collectors; intensification of street naming and property addressing system; designing of revenue database; and outsourcing collection of certain property taxes to private entities. Despite these mechanisms and strategies, property rate mobilisation was still hampered by the absence of professional valuation officers; low commitment and lack of political will to enforce regulations; lack of will to pay among property owners; and incomplete administrative set-up for property rate mobilisation. To improve property rate mobilisation at the local level, monitoring and supervision of processes must be made more regular and effective by relevant institutions; institutions responsible for mobilization must be equip with adequate logistics; local property rate database must be setup and updated regularly; political interference in tax mobilization should be minimized, and government should make efforts to train more valuation officers in the country by revamping the National Valuation School.

Keywords: Property Rate, Mechanisms, IGF, Revenue Mobilisation, Local Government