Determinants Of Property Rate Compliance Among Property Owners In Kumasi Metropolis

Abstract

The relevance of property rate towards nations’ development has become of interest to governments and scholars. Therefore, this study examined determinants (penalties, isomorphism, narcissism, individualism and demographic factors) of property rate compliance among property owners in Kumasi Metropolis. The study used an explanatory research design and a quantitative research approach. Integrating economic deterrence theory, theory of planned behaviour and institutional theory, data were collected from 322 property owners using closed-ended questionnaires and analysed with frequencies, means, standard deviation, partial least squares structural equation modelling (PLS-SEM). Stratified sampling technique was employed to ascertain the sample size. The findings showed that there is a significant relationship between penalties, isomorphism, narcissism and demographic factors and property rate compliance. The study revealed that property rate compliance is mainly influenced by penalties, isomorphism narcissism and demographic factors. It was recommended that; commissioner general should review and apply the available penalties accordingly. Similarly, institutional regulatory bodies like the Ghana Revenue Authority should exert pressures on property owners through the MMDAs in order to increase compliance. Again, GRA and MMDAs should consider psychological traits such as narcissism as well as demographic factors in setting strategies and policies to aid increase property rate compliance.