Abstract:
The principal aim of taxation is to finance government expenditures. Land Use Charge is a form of direct tax administered on landed properties. The Land Use Charge Law was enacted in 2014 to replace local property-related-taxes like Tenement rate, Ground rent and Neighbourhood Improvement Charge. The law which was enacted has since generated several controversies sine its enactment. The process of Land Use Charge administration was further reviewed in 2018 to incorporate the use of Geographical Information System (GIS) which was intended to enhance the overall performance of the Land Use Charge process. This study therefore assessed the administration of property tax, with specific emphasis on the Land Use Charge to ascertain the level of compliance of the taxpayers (i.e landlords) towards the property tax policies of the Ondo State government with the view of finding a solution that will increase the level of compliance to the payment of this tax. Using Akure as a case study, the study particularly examined the appropriateness of the process and basis of assessment of the Land Use Charge; investigated the relationship between the Land Use Charge process and Land Use Charge performance; evaluated the extent of compliance with the payment of Land Use Charge by the landlords and also examined the factors influencing the compliance or non-compliance by the taxpayers.Frequency Tables, percentages, weighted mean, trend analysis, stepwise multiple regression and Kruskal Wallis analytical tools were employed in explaining and amplifying the data of this study. The study shows that the adoption of GIS in land use charge administration has increased the efficiency of the administration of land use charge. It also reveals that a high level of compliance to the payment of Land Use Charge is precedent upon the amnesty rates, satisfaction with the process by the taxpayers, and greater accountable and judicious use of the revenue from the present and future proceeds form Land Use Charge. The study concluded by recommending more moral suasion measures like beneficial community projects and increased public enlightenment and awareness measures.The study also recommends the amendments of the land use law especially to accommodate retirees and other categories of vulnerable persons in its exemptions.
