Factors affecting property tax collection in a local government in Peru

Abstract

Property tax is the tax that generates the most revenue for municipalities; however, its collection is inadequate. Therefore, the general objective of this research is to propose a plan of awareness strategies to improve property tax collection in a local government in Peru. It is of applied type of non-experimental design, with a projective scope. It had a sample of 368 active property tax payers located in the urban area with amounts to be paid greater than 5% of the UIT, the technique used was the survey and as an instrument the questionnaire, which has been validated by the judgment of 5 professional experts, the reliability has been obtained by means of Cronbach's alpha. The results show that in the determination dimension 53% have a medium level and 7% low, in the collection dimension 78% have a low level and 2% high, in the control dimension 65% have a low level and 3% high and in the sanction dimension 61% have a low level and 2% high, thus demonstrating a lack of knowledge regarding this tax, scarce orientation to make payments, inadequate use of technology to facilitate payments, as well as a lack of knowledge about the destination of the resources collected. In order to mitigate these reasons why taxpayers fail to pay the property tax, a plan has been presented that contains strategies for education and awareness, effective communication, use of social networks and technology, incentives and recognition, and finally transparency and accountability.