Assessment of the Spread and Allocation of Taxes to Local Government Areas as Collected and Generated by Them

Some local governments could have not collected and generated enough taxes that they should benefit same ration as others that generated much. Some of these local governments had less volume of taxes collected and generated. This was of great concern. They should not benefit in the same ratio and shared like those that collected and generated large volume. The study assessed the justifications of how the spread and allocation of funds through the process of taxes as collected by the various local governments were shared among them. It emphasized the need and reason at which some of the local governments did not generate as much tax as others benefitted from the taxes generated by other local governments not considering the volume contributed by each. Each local government should be seen to get what they contributed rather than sharing the contributed taxes equally. The study design was descriptive survey. The researcher opted for describing the nature and the state of affairs as it set to archived. The methodology of this study included a population of 1750 employees from the 23 local government Councils of Kaduna State. The categories of respondents were Directors, Supervisor, Senior Administrative Officers, and Junior Administrative Officers. For this study, the researcher considered the age bracket of the local government staff from 28 years and above. The whole population was used. The method adopted by the researcher for the selection of the staff was by visit to each local government from 9.30am to 2.00 pm for three weeks. The source of data used for this study was primary. The instrument used for the data collection used was a self-administered questionnaire that was made up of both open-ended and close-ended questions. The instrument was validated by four professors in the faculty of management sciences making available to each all the questionnaires to validate. The method of data analysis was by Chi-square statistical tool employed to test the hypothesis to see deviations of the actual observations (observed frequency) from the expected that led to the acceptance or rejection of the null hypothesis. Findings revealed that some local governments collected and generated large volume of taxes as against others but the sharing process did not recognize and considered the volume of each rather they were shared almost approximately, the same. In conclusion, the collected and generated taxes were done by the efforts of each local government hence each local government was unique in its own. Recommended therefore, was that each local government should be given its own share based on the level of what they contributed rather than sharing the taxes to each local government equally.