PROPERTY RATING AS A SOURCE OF LOCAL GOVERNMENT REVENUE

PROPERTY RATING AS A SOURCE OF LOCAL GOVERNMENT REVENUE

Abstract

This project seeks to discuss property taxes as a source of revenue for local governments. Focuses on the local government of Olwest, Imo. A property rating or tenement rating is a tax levied on the owner of an appreciable property. A work that traces the history of real estate appraisals in local governments in Nigeria. Includes definitions of some basic terms. The purpose of real estate appraisals in Nigerian municipalities cannot be overstated. In view of the duties and duties imposed on local government authorities, they participate in housing evaluations with the aim of achieving:
It increases local government revenues, provides needed facilities to the poor, encourages building owners to develop their buildings, and promotes community cohesion and the purchase of large machinery. This rating was used to prevent urban decline by answering the big question of how to organize cities. It is now established by the Oru-West Local Authority that such land was heavily taxed, which was the reason many houses were demolished and new ones were built. Reputation is known to be the best way to make money, but there are also issues such as lack of personality, skills, and required equipment. The issues detailed in Chapter 4 of this project disrupt the free flow of food rations in our economy.

table of contents

title page

approval page

Mission

knowledge

overview

table of contents

chapter One

1.0 Introduction

1.1 Research background

1.2 Historical Development of Property Ratings in Nigeria

1.3 Survey method

1.4 Some basic terms for valuing rental properties.

Chapter 2

2.0 Literature review

2.1 Real estate appraisal in Olwest Municipality

2.2 Profit requirements and rationality of real estate valuation

Chapter 3

3.0 Methodology and process of real estate appraisal in local governments in Nigeria

chapter One

1.0 Introduction

A property appraisal, also known as a home appraisal, is a rate or tax levied on the owner or resident of an appraised property or apartment. It is a type of tax or tax rate levied on real property that is not owned by the government or the general public. Fees from the main source of income to local authorities. The term tenement valuation was not known until 1601, when Britain gradually established the Poverty Relief Fund. Property valuation today is not only the primary source of local government funding for development, It has started to build its base in the country, especially in Nigeria’s local governments, although it will keep these places. B. Oru – West Local Government is one of them.

Prior to introduction or evaluation, local governments relied on federal and state subsidies, bank loans, agriculture, etc. to realize funding. And another type of capital realization. The fact is that the money the government got at that time was not enough to manage their local affairs.They looked for ways to get decent money. With the introduction of real estate appraisals, governments now have another way of getting money.

The goal of introducing property appraisals is to enable local governments to generate a reasonable income. This income should be used to provide all necessary facilities such as water, electricity, access roads and good roads for the consumption of both the poor and the wealthy. . However, in the case of customs taxation, the amount of revenue required is quickly determined, after which the full responsibility is shared between the taxpayer or customs payer. The tax amount is determined by dividing the taxable amount by the total taxable amount. The valuation basis for real estate allocations is the taxable value of real estate and buildings.

Records show that little money was made through rent appraisals in the West Municipality of Immostae. This assessment is of the greatest help to local governments in the world, especially Nigeria, as it has helped them more than the agricultural sector and other sectors in the region.

1.2 Historical Background of Olwest Regional Government

In 1996, Olwest Municipality was established from the former Orl Municipality. It consists of 10 cities.
Headquarters of Ohakpu, Eleh, Aji, Nempi, Ozara, Otulu, Ubulu, Amaofu, Ibiasoegbe, Mgbidi, Oru West provinces.

It covers an area of ​​25 km and has an estimated population of 1.4 million. The people are mainly villagers, mostly farmers. For example, Ere is known for its cassava production and Otulu is known for its palm and plantain plantations. Mugvidi is known for its poultry industry. Aji is known for its yam production. in their city. Mgbidi’s Municipal Council Headquarters was built and set up through proceeds from a property appraisal in the area.

1.3 Historical Background of Property Valuation in Nigeria

Real estate appraisals in Nigeria are nothing new. There were very few civil servants. Nevertheless, roads, markets, chieftains’ palaces, and assembly halls were built and maintained through communal efforts. These posts are just guesswork.

Nigeria’s rating system is based on British law. British valuation law stems from the Poverty Relief Act of 1601, which stipulated a tax on all residents, such as country houses, to help the poor. This law is often referred to as the Elizabeth Law of England.

Real estate appraisals were first incorporated into the Nigerian Code in 1915. This law was the organized place of real estate appraisals as a source of funding for local governments. By 1958, the 1915 Ordinance was amended and amended to form the Nigerian and Lagos Acts of Assessment Ordinance Caps 15 and 16. When the head of state, General Muhammad, came to power in 1975, reforms of local government took place. In other words, various local government decrees were enacted and the real estate valuation system was changed. Various states are now empowered to issue local government decrees that provide for legal assistance operating in the Ol West Local Government Area of ​​Imo State.

1.4 Survey method

Information was collected from local government office property appraisal records, journals, oral interviews, property appraisal presentations at property management departments, discussions/interviews, textbooks, and project work.

1.5 Some basic conditions for the evaluation of residential apartments

When discussing the valuation of real estate as a source of local government revenue, you are likely to come across several words associated with Latin. Let’s do an assessment first.

evaluation:
This is called the imposition of land title in the form of taxes on occupation, development, and ownership, and is used to provide facilities by local government, the third tier of government within a jurisdiction. Property Rating:
This is a form of taxation and can be a tax on the possession, use or development, or valuation, of property. However, a real estate appraisal is a rate or tax levied on the owner or occupant of profitable real estate or rental property. Installment payments are the main source of income for municipalities.

Evaluable values:
This is the amount to which the price near age applies after deducting the cost and capital reduction amount from the money. For example, if the landlord gets her N1000 as rent. He then removes the expense and the tax clerk reduces the amount by the capitalized amount, say 5%. The remaining amount is the taxable amount.

Fee Niage:
This is the amount per naira that the applicable government authority pays as a rate of the annual net or taxable value of property or property in a given year. This is determined by calculating the total cost likely to be incurred and dividing it by the number of total taxable property or inheritance taxable property or inheritance in Rate Nairage.

Annual Net Value:
This is an amount equal to the rent the property would be expected to be rented for each year if the tenant agreed to pay all, usually minus the tenant’s fees and taxes, plus repair and insurance costs and other expenses. included. Maintains the inheritance, if any, in a state that demands its rent.

Rating value:
Valuations relate to the value of tenements currently appraised under the Section 106 Order.

Planned apartment:
This means tenements in any area of ​​state municipality.

Rental price:
This can be accounted for as the annual rent paid or payable on the open market for the tenement in question, or by analysis and comparison of the typical rent actually paid for the relevant managed class of tenement. Determined. properties.

Controllable users:
It is not easy to define the term “occupant” precisely and exhaustively. Profession includes possession as a primary factor, but it also includes something more. Legal possession itself does not constitute a profession. However, the owner of a vacant house owns it and can claim trespassing against anyone who enters it, but is not responsible for squatting over it as long as it remains vacant. . But if he establishes it and keeps it habitable whenever he chooses to go there, he is a squatter.

On the other hand, the owner is the person who actually owns a house or property that is not titled to it, either through lease from the owner or against the will of the owner.

Another factor that goes into structuring a profession is consistency. A traveling showman who builds temporary structures for his performances may be the structure’s occupants.