IT Solutions for Property Tax Collection

Wilson PrichardResearch Director

International Center for Tax and Development

The Importance of IT Systems

IT solutions have enormous potential to improve data management, and costs are declining• Tracking existing properties, managing

valuations, updating data over time, mapping properties

• Automating generation of tax payments due, based on standards formulas and rates

• Managing payment information, and ensuring compliance

Finding the Right System

IT systems should satisfy several objectives• Completeness• Cost• Usability• Transparency• Sustainability

Types of Options

1. International software solutions

2. “In House” software development

3. Local, private sector, solutions

The Merits of Local Options1. Simple solutions that meet core needs and can be better

customised to local condition2. Clear financial incentives for continuous technical

support3. Dramatically lower staffing and transaction costs4. More hands-on and timely technical support5. Reduced risks associated with technical “lock-in” and

declining technical support6. Greater reliance on open source platforms7. Greater scope for innovation and leadership at the local

level by virtue of being low cost and flexible

Barriers to Local Solutions

1. Short planning timelines

2. Short impact timelines

3. Search costs and cultural distance

4. Visibility for reporting

5. Vested interests