Study of financial and revenue resources of municipalities in global samples and comparative comparison in Iran

This study investigates the structure of municipal revenue systems in selected global contexts, with particular emphasis on the United States, and offers a comparative assessment of the mechanisms employed in Iran. The research aims to identify stable, transparent, and socially equitable financing models that can reduce municipal dependence on volatile income sources—most notably revenues linked to land transactions and construction permits. Employing a descriptive–analytical approach, the study integrates library research, statutory and regulatory reviews, and international case analysis. Findings indicate that in many countries, municipal budgets are typically composed of approximately one-third intergovernmental transfers, one-third property-based revenues, and ۳۰–۴۰ percent local taxes and service charges. These fiscal frameworks are embedded in clear legal structures designed to safeguard equity, transparency, and citizen participation, alongside targeted exemptions for vulnerable populations. In the United States, property taxation, intergovernmental grants, and local sales or income taxes constitute the dominant revenue pillars. In contrast, Iranian municipalities continue to rely heavily on construction-related income streams—an approach largely absent in the financing models of most other countries. The enactment of Iran’s ۲۰۲۲ Law on Sustainable Income and Expenditures of Municipalities and Rural Districts marks a significant institutional reform, aiming to curtail unlawful land-use-change revenues and promote diversified, rule-based, and transparent fiscal practices. The analysis concludes that Iran’s municipal fiscal imbalance is rooted in its disproportionate dependence on construction-derived revenues. Achieving sustainable urban financing will require strengthening local taxation capacity, expanding value-added tax revenue sharing, and promoting cooperative governance among central government, municipalities, and citizens. Key policy recommendations include: A-Increasing corporate and institutional tax contributions to gradually replace reliance on construction-based revenues; B-Enhancing fiscal transparency through integrated digital financial systems to reinforce public trust; C- Developing long-term revenue diversification strategies incorporating environmental fees, urban service charges, and public–private partnerships.

کلیدواژه ها:

Municipal Finance ، Revenue Diversification ، Comparative Urban Fiscal Systems