The Bulletin of the Center for Research on Regional Economic Systems, the Graduate School of Social Science, Hiroshima University Issue 22
2011-03 発行

都道府県別にみた地方税の徴収・不納欠損・滞納繰越の状況 <研究ノート>

Collection, Loss Through Non-Payment and Carried-over Arrears of Local Tax by Prefecture in Japan
The main objective of this research note is to determine the presence and strength of correlation between local tax collection of prefectures and that of municipalities by prefecture. The data of local tax collection by municipalities were aggregated into the prefecture which they belong.

The results show us that there is a relevant correlation in the ratio of tax collection, the ratio of carried-over arrears, and collection cost to tax revenue. The reasons for it would be that 1) a lot of part of taxation bases overlaps between prefectures and municipalities, 2) plural municipalities in a prefecture make a consortium to process arrears or administer taxation, 3) a kind of yardstick competition works between local governments.

While there is a strong correlation between them, divergences still remain. If they are larger than expected and are mainly attributed to the system of taxation or the manner of carrying over by prefecture and municipality, they might lead to a sort of tax externalities. Further research is needed to confirm the reasons.
Local tax
Loss through non-payment
Carried-over arrears