Dissertation (MA Business Administration)The study focused on the assessment of the challenges Facing Local Government Authorities in Collecting Property Tax for Service Delivery Improvement in Mpwapwa District Council – Dodoma. It was guided by the following specific objectives:-to examine the extent of collection of property tax in Mpwapwa district council, to identify the proportion of collected revenue spent in service delivery related with improving the value of properties in the study area and to examine challenges encountered by the council in property tax collection and its expenditure in the study area. Literature review related to study topic done by other scholar was employed in this study. The study based on cross sectional research design whereby qualitative and quantitative research approach employed. The sample size of 369 respondents was employed in this study whereas probability and non-probability sampling techniques used to determine the sample size. Data collected by using social survey and personal interview as methods for data collection whereby interview guide and questionnaire used as tools for data collection. Data analyzed in both quantitatively and qualitatively with the help of computer software (Statistical Packages for Social Scientists (SPSS Version 21). The findings reveal that; most of respondents perceived the rate of property tax as strongly unfair and they suggest that the property tax rate must be abolished since the social services delivery is poor including infrastructure compared to property tax collected. Moreover; the findings revealed that challenges faced local government in property tax collection` include harassment in tax collection, poor management and lack of income faced by property owners. The study recommended avoidance of harassment during tax collection, the need to improve employees‟ management skills and efforts to improve social services delivery resulting from property tax collection. Furthermore; the study recommends that; in order to improve property tax collection community members should be sensitized and involved in whole process of property tax collection, allocation and expenditure.