The Relationship between Residential Property Development and Property Tax generation in Ibadan North, Oyo State

  •  Ajayi M. T. A.    
  •  Ogunbajo A. Rukaiyat    
  •  Sule I. Abass    
  •  Abdulkareem Sekinat    


This paper examined the relationship between residential property development and property tax generation in Ibadan North Local Government, Oyo State- Nigeria. Data on residential properties within the Local Government for an eleven year period (1999 – 2010) was obtained from the appropriate planning authority, while records of property taxes generated within the same eleven year period was sourced from the taxing authority within the local government. Regression analysis was used to examine the degree and nature of relationship that a change in the number of residential properties will have on the generation of property taxes. Results showed that the actual property tax paid in Ibadan North Local Government Council is being influenced by the number of residential buildings within the council at about 59.3% variation. This implies that a positive variation in the number of residential buildings within the council will lead to a positive variation in the actual property tax generated. Investigation further revealed that this revenue option is however not fully utilized as payments of these taxes are not fully enforced by the taxing authority. It is therefore paramount that the local government seeks for means of improving its tax base through effective property taxation, thus increasing funds available for community development projects such as electrification, road construction, drainages and other essential utilities.

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