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ABSTRACT:

The rapid urbanization in Nigeria necessitates effective revenue generation sources available to municipal authorities. Land taxation has emerged as a significant source of municipal revenue in both developed and developing countries. This study examined the practice of land taxation in Delta State, Nigeria, with a view to identifying critical issues that impede its effectiveness. This research utilized survey method based on policy implementation to explore issues in property tax, capital gains tax, and probate tax practices in Delta State. Data collection was based on a questionnaire survey of a sample of 49 property tax administrators in the study area. Data were presented using a weighted mean Table, and results show that despite various reforms, including the Delta State Internal Revenue Service Act of 2020, the implementation of property taxation remains challenged by fragmented administration, outdated valuation systems, poor revenue collection mechanisms, and a lack of transparency and accountability. Following statistical analysis with Factor Analysis and Spearman’s Bivariate Correlation, the study further reveals low awareness among property owners, significant barriers to implementation such as policy design flaws and political interference, and administrative inefficiencies. Recommendations include simplifying tax laws, enhancing transparency, improving technological infrastructure, and providing continuous training for tax officials. Addressing these issues is critical for optimizing revenue generation and fostering sustainable development in Delta State.

KEYWORDS:

Administration, Challenges, Compliance, Delta, Implementation, Revenue

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