An examination of the relationship between provisions of infrastructural facilities and property tax in Ibadan North Local Government

Abstract

Local councils have responsibility to provide infrastructure for the sustenance of the residents. within their jurisdictions. Thus, many local councils have resorted to the use of property tax in addition to other sources of revenue. However, there is no correlation between the generation of property tax and the provision of social amenities or key infrastructure that should be sustaining residents. The study adopted secondary data sourced from Ibadan North Local Government, that is, the amount of property tax generated and the amount of financial allocation to the provision of social amenities from 1999 till 2010. The result from the regression analysis conducted indicated that property tax is responsible for a statistical variation of 74.2% in the financial allocation to infrastructure in the study area. The recommendation of the study is that local council needs to examine the tax base as well as develop a model that will encourage participation of the residents in property tax administration.