In late 2021, the Government of Liberia (GOL) through the Liberia Revenue Authority (LRA) introduced the Local Government Real Property Tax Administration Pilot Project in Margibi County. By allowing 50 percent of collected revenue from taxation of property to stay in the originating county, the 50/50 pilot represents a significant shift from the current tax system centralizing all revenue in the capital, Monrovia. Fiscal decentralization can potentially promote local development, improvement of public service delivery and, in the longer term, a more productive social contract between the government and citizenry. However, local tax systems can also become a source of coercive, exclusionary and corrupt practices undermining the relationship between states authorities and citizens. This pilot project, often referred to as the 50/50 pilot, was later expanded to Grand Bassa County in late 2023 and serves as a case study in this report.
This research note examines the implementation of property tax in Liberia. Based on original fieldwork data, the note analyses taxpayers’ perceptions of the new tax system in the light of their experiences with public services, development projects and the political system.
