Strengthening Property Tax System - phase II

Brief/Background

This project aims at enhancing the property tax collection in Jordan by increasing compliance rate, implementing a more cost-effective system and empowering local communities.

This project builds on the previous project of devolving property tax collection to the municipal level.

What have we accomplished so far

  • Improved  the existing electronic property tax system collection that was developed in phase I of the project for the Ministry of Finance.
  • Enhanced the skills of the Ministry’s staff to fully manage and further develop the system

Expected outputs



  • Establishing the legal and institutional framework for the implementation of a modern property tax system
  • Upgrading the current nationwide de-centralized property tax information system and implementing the system in all municipalities
  • Drafting and implementing property tax compliance mechanisms 
  • Establishing a Property Tax Directorate in line with the new proposed law

Who Finances it?

Donor Name Amount contributed
Government of Jordan 1,710,450 USD
UNDP 420,189 USD

Delivery in previous fiscal year

Year Delivery per year
2010 227,906 USD
2011 646,221 USD
2012 633,199 USD
Overview
Status:
active
Project Start Date:
1 September 2010
Estimated End Date:
31 December 2014
Focus Areas
Democratic Governance
Responsible Party:
Ministry of Municipal Affairs, municipalities
Implementing Partner:
Ministry of Finance
Project Budget:
2,130,639 USD
Location:
Ministry of Finance, Amman
highlights
  • Phase one of the project successfully.

    - drafted a new bill on property  
    - taxintroduced computerized systems
    - Changed the standing operating procedures in the realization and collection of tax.

  • The project was showcased in regional events and several countries in the region visited the project to seek cooperation or even investigated purchasing the system including Syria and Palestine.

  • The electronic property tax system collection has reduced the time required to close annual property tax accounts in municipalities from 3 months after the fiscal year to “One Click” and Reduced the human factor in assessing properties and collecting tax
  • the system has increased the collection rates at municipalities in Jordan by 14.6% from 2010 to 2011

 

facts and figures

The property tax collection over the last 10 years has never been higher than 63% of the total annual property tax due. In 2008, the collection ratio dropped to only 52% even though the total property tax due has increased by almost 20%.