Estimating the Amount of Sustainability of Municipality Revenue in case of Paying Building Taxes on Installment Plan (The Case of Isfahan Municipality)

Municipalities’ annual budget, especially in metropolises, has seasonal and annual fluctuations which result from their dependency on unsustainable revenue resources. The high amount of unsustainable revenue resources, mostly building-related ones, has resulted in the municipalities’ uncertainty about their revenue amount due to the very fluctuations. Such an uncertainty has made the municipalities of metropolises and the central governments to guard against it. From among the methods to deal with such uncertain resources are governmental aids and legal permits. In this article, besides investigating into such methods, the legal permit for paying tax on installment plan has been analyzed which is one of the methods for avoiding unsustainable revenue for municipalities. The current article, utilizing the data on the revenue amount of Isfahan municipality from 1995 till 2009 and the GARCH pattern, has estimated the effect of paying building taxes on installment plan on the sustainability of the revenue for the municipality of Isfahan. The results show that such a method has the sustainability of the whole revenue of the municipality in consequence and that is why it is suggested that the regulations be devised and announced in a way that there could be a sustainable revenue.