An Evaluation of the Challenges Associated With Commercial Properties Taxes in Okpella

ABSTRACT

The study evaluates the challenges associated with commercial properties taxes in Okpella”. A total of 238 questionnaires were distributed across the various selected commercial property in the study area. Out of these, 178 questionnaires were successfully retrieved and found valid for analysis, representing 75% response rate. The findings reveal that the major l forms of taxes levied on commercial property investors in Okpella were; property tax/tenement rate, land use charge, ground rent, stamp duty, VAT on rental income and business premises levy, the study showed that the major challenges hindering effective tax compliance in Okpella were inadequate data and property records, valuation and assessment issues, multiple tax collection, corruption and administrative inefficiencies, From the results study revealed that the most prominent sources of finance were personal savings/equity, commercial banks and mortgage institutions, cooperative/community schemes and internal owner equity, the study also revealed that the major benefit derived from payments of taxes are; improved infrastructure, enhanced public utilities, boost in property value, legal protection and contribution to local economic growth. The study recommended that government should strengthen tax administration through improved property valuation systems, proper record-keeping, public enlightenment and digital platforms that make payment simple and transparent. Policy interventions should focus on expanding access to institutional financing such as mortgage banks, development banks, and real estate investment trusts (REITs). This will ease investors’ dependence on personal savings and informal sources, thereby stimulating sustainable property investment. Revenue generated from property taxes should be transparently reinvested in visible infrastructure, utilities, and community projects. When taxpayers see tangible benefits, compliance will increase, and the cycle of property development and economic growth will be strengthened.