LPSA’s Thematic Working Group on Subnational Finance

LPSA’s Thematic Working Group on Subnational Finance held an open meeting on March 6, 2024, moderated by Dr. Titilola Akindeinde, Executive Director of the Local Government Revenue Initiative (LoGRI) and Co-Chair of the working group.

The meeting brought together leading experts to discuss critical strategies and challenges in property tax reforms across diverse contexts in lower-income countries, exploring innovative approaches to strengthen local government revenue systems.

Discussions and Highlights

Designing “Good Enough” Approaches to Property Tax Reform
Dr. Wilson Prichard (LoGRI Chair, University of Toronto)

Dr. Prichard discussed how inappropriate systems in lower-income countries hinder efficient property tax administration, highlighting registration, valuation expertise, and intergovernmental collaboration issues. He advocated for “Good Enough” reform strategies that simplify data requirements, enhance transparency, and foster political acceptability, aiming for a practical approach to overcome inertia and vested interests.

Valuation Reform in Freetown
Evan Trowbridge (Technical Lead, LoGRI)

Trowbridge detailed the transparent and progressive valuation methodology implemented in Freetown, Sierra Leone. He outlined the six-step valuation process and emphasized the success of adopting automated systems to increase the city’s property tax register by over 100%, enhance assessments, and improve compliance, ultimately boosting revenue potential.

Titling-Led vs. Property-Tax-Led Approaches to Registration
Dr. Colette Nyirakamana (Research Lead, LoGRI)

Dr. Nyirakamana discussed Senegal’s recent property registration reforms, in which the central government supported politically to unlock municipal revenue potential. She evaluated the effectiveness of a “Cadaster-First” approach and suggested prioritizing a property-tax-led strategy as a foundational step to building a national cadaster.

Rosetta Wilson and Robert Mugangaizi provided critical commentary on the presentations, drawing comparisons between Sierra Leone, Senegal, and Uganda’s property tax reforms. They underscored the role of technology in simplifying property valuation and the persistent challenges in addressing taxpayer apathy and institutional resistance.

Each discussion concluded with a Q&A session, where participants engaged directly with the speakers to explore practical solutions and future directions. Dr. Akindeinde announced the next quarterly meeting of the Subnational Finance Working Group, scheduled for June 5, 2024.

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