Commercial Revenues

The analysis of the Local Authories’ revenue performance revealed mixed results. Twelve Local Authories had increases over the 2012 – 2013 financial year whilst two (2) had a decrease as outlined in Table 1 below:

Table 1: Shows the own source revenues collected  2013-2014 financial year

National Outcome # 6: Effective Governance
Responsibilities/Actions #  7  - Identify adequate and reliable sources for the funding  of Local Government mandates and functions of Local Authorities
Local Authority Revenue Earned
     2013 - 2014
Kingston & St. Andrew Corporation 392,100,353.06
Clarendon $57,218,371.83
Manchester $99,910,451.00
St. Elizabeth $57,135,003.44
Westmoreland $55,066,009.59
Hanover $33,979,755.70
St. James $132,788,591.23
St. Ann $133,141,230.00
Trelawny $49,892,039.83
St. Mary $46,607,125.09
Portland $42,258,681.31
St. Thomas $40,645,418.45
St. Catherine $108,676,087.44
Portmore Municipality $32,922,185.28

KSAC’s general revenue and self-financing activities totalled $392,100,353.06 which was more than what was collected in the prior 2012 – 2013 financial year ($361,833,865.70). Market Fees/Leases was the largest contributor to the KSAC’s revenue base for the 2013-2014 financial year.
Clarendon  Parish  Council’s  general  revenue  and  self-financing  activities  totalled $57,218,371.83, with Building and Subdivision Fees generating most of the revenues collected by the Council.  This is an increase of $2,738,821.44 when compared to the prior year of $54,479,550.39.
Manchester Parish Council collected $99,910,451.00 in revenue which is a substantial improvement from last year’s amount of $58,876,493.18. Market Fees/Leases, Transportation Centre, Barbers & Hairdressers and Building & Subdivision Fees were the largest generator of revenues for this parish.
St. Elizabeth  Parish Council  collected  $57,135,003.44  which  reflects  an  increase when  compared  to  the  2012–2013  financial  year’s  earnings  of  ($48,560,654.87). Building and Subdivision Fees contributed to most of revenues earned.

Westmoreland Parish Council earned $55,066,009.59 in revenue, which was more than the 2011-2012 financial year’s earnings of $44,042,005.63. The Council’s transportation centre generated most of the revenue for the reported period.
Hanover Parish Council collected $33,979,755.70 with the transportation centre and building & subdivision being the largest contributors of revenue to the parish.
St. James Parish Council’s revenue totalled $132,788,591.23 which was less than the amount  collected  in  the  2012  –  2013  financial  year  which  was  $147,879,080.00. Building and subdivision fees were the highest contributor to the Council’s revenues.
St. Ann Parish Council reported that $133,141,230.00 was collected for the past financial year. Market fees, leases and building & subdivision fees accounted for the bulk of revenue collected.
Trelawny Parish Council collected $49,892,039.83 in revenues with building and subdivision fees being the highest contributor to the council’s collection activities.
St. Mary Parish Council reported that $46,607,125.09 was collected with building & subdivision being the largest contributor to this amount. The amount collected was more than the previous year’s amount of $44,036,325.52.
Portland Parish Council reported that $42,258,681.31 was collected with market fees, leases and building & subdivision being the largest contributors to revenue.
St. Thomas Parish Council collected $40,645,418.45 during the 2013-2014 period. This was more than the amount of $33,477,492.06 collected in the previous financial year. Market fees and leases were the largest contributors to that Council’s revenue.
St. Catherine Parish Council collected $108,676,087.44 in revenues which was substantially more than the amount of $36,889,195.68 collected during the prior period. Market fees, leases and building and subdivision fees made up the bulk of fees collected.
Portmore Municipal Council collected $32,922,185.28 in revenues during the reported period.
The LAs reported that revenues were earned from approximately 30 sources inclusive of:  billboards  &  signs,  cemeteries,  market  fees  and  leases,  transportation  centre, barbers & hairdressers, building & subdivision, trade licence, butcher’s licence, water rate, burial inspection, rental of premises, sale of water, arcade, parking fees, public amenities, parking fines, place of amusement, inspection fees, litter fines, numbering fees, encroachment, income from investment, metro/animal pound, shop fees and licences, vending fees/licence, billboard fines, Melrose Yam Park, slaughter houses, project management fees, and gated communities. It is noted that the above mentioned LAs’ revenue sources have increased by ten (10) when compared to the prior year which confirms that the authorities are identifying adequate and reliable sources of funding to support their functions as mentioned in the Medium Term Socio-Economic Policy Framework 2012-2015.

Approximately $5,831,853,768.00 was received from property tax collection and $2,685,368,747.00 from motor vehicle licensing fees.  For the 2013 - 2014 period, property tax collections increased by 48% over the corresponding period (2012 – 2013 collected $2,805,300,000.00), this represents $3,026,553,768.00. Collections for 2013 – 2014 financial year showed a difference of $1,428,146,232.00 between the actual and projected figures. The target for the period was $7.26 Billion, 80% of which was collected. The level of increased collections is attributed to the partnerships amongst the Ministry of Local Government & Community Development, the Local Authorities, Tax Administration Jamaica, Ministry of Finance and Planning and Fiscal Services Limited to ensure the achievement of the target. Amongst the measures adopted and implemented were:-

  • Local compliance measures organised by the local authorities and the local TAJ offices  which  involved  outstation  collections  on  week-ends  in  remote communities and housing schemes; door-to-door visits to delinquent property owners, town hall meetings and community fairs;
  • A focused public relations campaign undertaken at the national, regional and parish levels. The primary aim was to bring awareness of the benefits of paying property taxes and the use to which the property tax dollars are put by the respective local authorities.;
  • Active pursuit of delinquent property owners including court cases and where necessary, detention; and
  • Technological support to facilitate collections particularly in the remote collection areas and also to aid in the compliance efforts.

Motor vehicle licence collections for the reported period amounted to 2,298,296,731.79. This surpassed the projected collections by 387,072,015.21 and is comparatively more than the amount collected for the 2012-2013 financial year.  The total disbursement from the Equalization Fund for the period April 2013 – March 2014 to the LAs was $503,971,475.74 for parochial road rehabilitation, infirmary and municipal infrastructure and other projects.  This improvement in disbursement was due to the increased collections received from property tax and motor vehicle licensing.