Faculty: Environmental Sciences
Department: Estate Management
Odimegwu, C. N.
Egolum, C. C.
Anambra State Property and Land Use Charge (APLUC) Law was promulgated in 2011 in order to address the problem of dwindling revenue allocations to the State. Doubts also abound as to whether the APLUC really yields the expected dividend for the State. This study, therefore, appraised APLUC with a view to assessing its performance with regards to revenue generation. Three towns, namely, Awka, Onitsha and Nnewi were chosen for this study. Survey design was used to generate data. The APLUC Law was compared with the property tax policy guide of UN-HABITAT to determine the adequacy of its provisions. The APLUC Law was also compared with the land and property charge laws of Lagos, Edo and Enugu from South-West, South-South and South-East of Nigeria respectively. The responses from the tax administrators (GLOBAL MCKENS) and the Estate Surveyors and Valuers were used to examine the property tax assessment basis and methods of tax assessment provided by the law. The tax revenue from 2011 to 2015 obtained from the Anambra State Ministry of Finance was evaluated to ascertain the performance of the property tax. Content analysis of the tax laws was used to answer research questions 1 and 2. Mean, frequencies and percentages were used to answer research questions 3 to 6. Hypothesis 1 and 2 were tested using Chi square test, Hypothesis 3,4 and 5 were tested using one sample t- test while hypothesis 6 was tested using paired sample t- test.The study discovered that there is a significant difference between the provisions of APLUC and UN-HABITAT land and property tax policy guide. Again, the APLUC Law did not provide the basis for assessment, and the skills and training of tax assessors. Again, it did not define the cycle for updating taxable values among others. This shows that the tax assessment system is not transparent. The comparison of the APLUC Law with those of the other states shows no significant difference in the provisions of the tax laws. The basis and method of tax assessment provided by the law based on the responses are not consistent with known equitable principles of taxation. The analysis of yearly tax revenue shows a four percent (4%) success rate which indicates a low performance of the tax system. The study recommended that, the provisions of the APLUC law should be reviewed to indicate the basis of allocation of the tax burden to tax payers since a transparent tax assessment system enhances public acceptability of the tax. The basis of its assessment should be on income generated from property on annual basis as against the market value of property. The APLUC Law should also name estate surveyors and valuers as the expert tax assessors since they are the professionals in valuation for property taxation. They should also be included as members of the tax assessment appeal panel so as to create a transparent assessment system. Finally, further research should be on impact of APLUC on rural development.