Role of Property Tax in Developing Countries

Abstract

Purpose: The aim of the study is to examine the role of property tax in developing countries.
 Methodology: This study adopted a desk methodology. The study looked into already published studies and reports as the data was easily accessed through online journals and libraries
 Findings: The study established that provision of improved public services, operational debt recovery, sanctions and penalties, provision of discounts and waivers on interests and penalties, social pressure, and reducing compliance cost as tools of enforcement were found to be effective in ensuring compliance in rates payment.
 Unique Contribution to Theory, Practice and Policy: The study used Cary Brown Model and Agglomeration Economies Theory. The study recommend that tax authorities should adopt improvements in rating to capture the values of the properties, adopts one regime of taxation and regularly updates the property values to benefit from increase in revenue because of rising property values.