The study aimed to examine valuation practices and challenges facing property tax collection in Amhara national regional state: in the case study of Bahir Dar city administration. The city administration is interested in revenue from property taxes to finance local social services provided to the people. However, the property tax revenue collection, administration activities, and valuation practices were often inefficient and the collected revenues were inappropriately managed and the amount of revenue-generating was very low. Besides, the practical implementation of property tax collection and valuation were confronted with many problems and the factors that influence property tax collection in the city administration were not properly analyzed. The spatial scope of the study was limited in four kebeles of Bahir Dar city including Abay Ras, Ghion, Shembit, and Kebele 01 since ample real properties were registered in this kebeles for property taxation purpose. Primary and secondary data were the type of data for this research and the sources of data for this study were property taxpayers and officials of different sectors. Interview, questionnaire, and secondary documents were the methods of data collection for this study. For this research, 8265 property taxpayers and 12 tax professionals were used as the target population of the study, and a stratified sampling technique was used to get a representative sample in each sample kebele. Therefore, 212 respondents were selected for this research as a sample, and data were collected from this sample. Descriptive and inferential statistics were used to analyze the collected data and bivariate and multivariable logistics regression models were used to identify the most significant variables in the econometrics techniques. As the research finding showed, 76.9% of the respondents believed that the current property tax collections were not effective in the city administration. As the findings indicated, the generalized factors for the presence of non-effectiveness of property tax collection were poor property tax administration, weak enforcement by the city administration, low use of technology, low awareness of property taxpayers, the existence of inappropriate property tax laws, low academic qualification of property tax collectors and valuers and absence of well- functioned institutions. Therefore, the paper recommends that these challenges should be addressed by the use of modern technology for taxation, updating the current property tax policy, increasing the quality and quantity of human resource developments, and improved the internal property tax administration to bring effective property tax collection in the city administration. Key Words: Effective property tax collection, Binary logistics regression, Property tax challenges, Property valuation practices 1