Rajiv Rishyakaran, ADUN Bukit Gasing Financial Independence of Local Governments.

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

Financial Independence of Local Governments

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

International Overview

Property Taxes paid around the world• Selangor: 1-2% of Annual Value (adjusted) • Annual Value = estimated annual rent

• Singapore: 0-20% of Annual Value• Lower rate for owner occupied as well

• Melbourne: 4% of Annual Value• Has been on a decline, 6.5% in Yr2000

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

Singapore

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

Melbourne

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

International Overview

Property Taxes paid around the world• Property Band, based on house price• Bromley, UK (London Borough)• £135,000 1 bedroom flat, property tax £1890

• Nottingham, UK• £75,000 2 bedroom terrace house, property tax

£1675

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

International Overview

Property Taxes paid around the world• USA – multiple sources of income• Springfield, IL – 8.5% Sales Tax• Toledo, USA: Income tax, not property tax the bulk

of revenue• New York City: Many sources of income, including

27% state and federal aid

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

Toledo

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

New York

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

New York

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

International Overview

Local Gov Income Per Capita• Petaling Jaya: RM470• Subang Jaya: RM330• Selayang: RM269• Melbourne: $3400 (night) or $469• New York: $8625• Toledo: $869

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

Conclusion

1. Federal & State Governments can still subsidize

2. Create multiple streams of income1. Special license Fees2. Attract Investment

Financial Independence of LGRajiv Rishyakaran, ADUN Bukit Gasing

Q & A