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Cities are great, but you need to invest more money. The basic village center only generates something like 0.1 tax for the mayor, so it would over a hundred years until the holding starts producing notable taxes.
At minimum you also should directly buy a Guilds building, and if possible also a Tradeport and/or Farms & Fields. So the city will immediately contribute to county development, and it won't be long before the mayors can fund upgrades themselves.
This also prevents them from building useless buildings, like Barracks etc.
I don't think you understand the problem. I have Clan government, not Tribal. Clans can't collect tax revenue from cities or recruit levies from them. I get no benefit from the holding and never will as long as it remains a city.
Not sure where you get that idea from. Of course the mayors pay their nominal rates to Clan rulers.
There may be a bug though, i think it is related to certain eastern cultures (like arabic and persian) - iirc all cultures who call their mayors and barons "Wali".
The game installs a mayor, but he is actually regarded as a castle owner. This makes him the "wrong holding type" who doesn't earn anything.
Usually revoking the city and granting it to a new holder fixes it (with the dedicated button on the holding card). Though some people reported that it didn't work for them.
For myself, i have played a lot with various muslim and african rulers, and only had this issue once while playing as the Nestorian ruler in Socotra.
That's not it. The cities have a little exclamation mark over the rectangle that displays the holding type. When you mouse over this warning it states:
"Wrong type of holding. City holdings cannot be effectively held by characters with clan governments and will provide no taxes or levies."
I have a clan government and correspondingly the revenue and levies from the city are zero.
This means either
A) you are trying to hold the city yourself
or
B) you are seeing the bug i described above
But the idea about Clans not getting taxes from city vassals is just absurd. Even tribals get taxes from them, although they cannot build cities.
Right, I get that, except that I'm not holding the city myself. It has a mayor. And like I said in the OP I've tried revoking and reassigning the holding to another mayor/lower noble. It doesn't work.
https://imgur.com/a/bsIJUZR
Notice that while I control the county, the city does have a mayor, Argbadh Farroukh. Notice also the 0.00 listed tax income.