In many countries real property taxation revenues is one of the most important sources of revenue of local governments.
Today, the existing real property assessment and tax collection system is under pressure to increase its efficiency. Traditional manual workflows of partially redundant working steps cause delays and inconveniences for the tax paying public – a fact that certainly does not increase the willingness of property owners to pay their taxes regularly and on time. National governments are usually very interested that local governments increase their real property tax collection efficiency, hoping to reduce their dependency on national transfers and grants. Therefore, they often provide financial and technical assistance to modernize and increase the efficiency of the local government revenue generation system. However, computerization also requires the simultaneous redesign and adjustment of workflow processes otherwise the cost of data collection will increase.
In order to streamline the efficiency and lessen administrative costs, the computerization of the local real property tax administration system has gained high priority. Usually two connected elements or modules are at the core of the automation of a real property taxation system:
- A digital data management system for the storage of all taxation relevant records and automation of routine functions, such as printing of tax collection reminder letters, generation of summary assessments, tax collection and other reports (an example of an integrated tax administration system include the recently developed iTAX system in the Philippines)
- A digital Tax Parcel Mapping component connected to the data management system.