ECONOMIC ESSENCE AND ROLE OF PROPERTY TAXES IN UKRAINE

2021 ◽  
pp. 201-209
Author(s):  
Volodymyr DMYTRIV
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Developed Countries ◽  
Property Taxes ◽  
Tax Rates ◽  
Advantages And Disadvantages ◽  
Property Taxation ◽  
Democratic State ◽  
State And Local ◽  
Taxation System

Introduction. The development of local self-government is one of the important prerequisites for the formation of a democratic state. Effective activity of local self-government bodies is impossible without a sufficient amount of financial resources, which are formed at the expense of the local budget’s own tax revenues. The local taxes and fees are the basis of financial independence of local authorities in the most developed countries of the world, the main among which are considered property taxes. The formation and development of national tax systems takes longer in the most developed countries than in Ukraine, which in its turn, affects the quality of tax legislation and as a consequence is accompanied by a misunderstanding on the part of society’s tax innovations. The construction of the taxation system should be based on the citizens’ awareness of the fiscal importance of property taxes in the formation of the revenue side of the state and local budgets. The purpose of the article is to determine the features of the collection of property taxes in Ukraine, research their role in the formation of the revenue side of local budgets and to outline areas for improving property taxes in Ukraine using foreign experience. Results. The general features of the evolution of the property taxation system are considered. It is argued that a key element of the real estate taxation mechanism if the procedure for determining the tax base, which is mostly the valuation of the object. It is necessary to review property tax rates, conduct an inventory and ensure the full functioning of the system of mass registration of real estate, introduce a correction factor to take into account historical, territorial and other characteristics of real estate, increase tax literacy and tax culture of the population. Prospects. The attention will be paid to the differentiation of property tax rates, the feasibility of introducing preferential taxation, the advantages and disadvantages of property taxation and more in further research,.

THE CONCEPT OF REAL ESTATE TAXATION BASED ON THE AD VALOREM PRINCIPLE

2021 ◽  
Vol 9 (1) ◽  
pp. 225-249
Author(s):  
Sylwia Skrzypek - Ahmed ◽  
Tomasz Wołowiec
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Tax Rates ◽  
Real Property ◽  
System A ◽  
Estate Taxation ◽  
Pros And Cons ◽  
The Government ◽  
Taxation System ◽  
Ad Valorem

The purpose of this paper is to evaluate the pros and cons of ad valorem real estate taxation in the context of the reform of the Polish real estate taxation system. A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This contrasts with a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible proper-ty. Real property (also called real estate or realty) means the combination of land and im-provements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real proper-ty is often taxed based on its classification. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial, and vacant real proper-ty. In Israel, for example, property tax rates are double for vacant apartments versus occu-pied apartments.

LEGAL AND ECONOMIC ASPECTS OF PROPERTY TAXATION IN THE EUROPEAN UNION

2018 ◽  
Vol 1 (3) ◽  
pp. 231-278
Author(s):  
Tomasz Wołowiec
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Tax Rates ◽  
The European Union ◽  
Real Property ◽  
The Real Estate ◽  
Personal Property ◽  
Property Taxation ◽  
Estate Property ◽  
The Government

A property tax (or millage tax) is a levy on real estate that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the real estate property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This is in contrast to a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible property. Real property (also called real estate or realty) means the combination of land and improvements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real property is often taxed based on its classification. Classification is the grouping of properties based on similar use. Real estate properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial and vacant real property. In Israel, for example, property tax rates are double for vacant apartments versus occupied apartments.

scholarly journals Powierzchniowy a katastralny system opodatkowania nieruchomości w Polsce

Studia BAS ◽  
2021 ◽  
Vol 1 (65) ◽  
pp. 127-146
Author(s):  
Sebastian Gnat
Keyword(s):  
Real Estate ◽  
Econometric Model ◽  
Property Tax ◽  
Ad Valorem Tax ◽  
Tax Rate ◽  
Property Taxation ◽  
Taxation System ◽  
The Impact ◽  
Proper Setting ◽  
Ad Valorem

The article explores the economic aspects of area and value-based taxation of Polish real estate. It begins with the presentation of information on the conditions of property taxation in Poland. Next, a review of the research on the cadastral tax is provided, as well as the assumptions of the econometric model used for mass valuation of the analysed real estate. The main part of the article contains the results of the simulation of replacing the property tax with an ad valorem one. Particular attention is given to the impact of the cadastral tax rate on the revenues of municipalities and changes in the tax burden on individual properties. The main aim of this study was to show the importance of the proper setting of the ad valorem tax rate in the process of reforming the property taxation system.

Features of property taxes and their role in the formation of local budget revenues

2019 ◽  
pp. 66-70
Author(s):  
Vasyl Prots
Keyword(s):  
Real Estate ◽  
Local Governments ◽  
Early Stage ◽  
Current System ◽  
Property Tax ◽  
Property Taxes ◽  
Local Taxes ◽  
Property Taxation ◽  
Real Estate Tax ◽  
Property Inheritance

The extension of powers and functions of local self-government bodies in the context of financial decentralization should be accompanied by an appropriate increase of local taxes and fees to local budgets. Currently, property tax is a new element of the local taxation system and a financial tool for local governments. Since the property tax system is at an early stage in its development, there are a number of debatable issues, in particular, it is really necessary to assess the current system of property taxation in Ukraine, to investigate the fiscal role of property taxes and to outline directions for its improvement. The paper argues that in contrast to Ukraine, property taxes in many countries include the taxes on certain types of property, on net assets, on transfer of property ownership. The author proves that the taxation of property is based on the following principles: equivalence; solvency and equity; fiscal efficiency and financial capacity; security; performance. The analysis shows that since 2015, due to increased tax revenues, local taxes and fees have become the second largest source of local budgets. In 2015-2017 the largest share in the structure of property tax was paid for land 90-93%, the tax on real estate, other than land plot 4,6-8,3%, transport tax 0,8-2,7%. However, the greatest increase of revenues to local budgets accounted for the tax on real estate. The main factors of the growth of property tax since 2015 are due to the inclusion of land and transport taxes to property tax and the introduction of new ratios of indexation of normative monetary estimates for calculating land payments. The shortcomings of the system of property taxation are identified, namely: the level of urbanization of the territory where the object of taxation is located is not taken into account; the existing approach to taxing the area of immovable property, different from the land, does not take into account the degree of its physical depreciation; non-compliance with the principle of social equality and the imperfect mechanism of taxation of non-residential real estate of economic entities and individuals. The paper suggests to include irregular taxes into property taxes, that is, taxes on transfer of property: inheritance tax; gift tax. To determine the amount of real estate tax and land tax, the rates should be set as a percentage of the market value of the tax object, in order to simplify the process of taxes administering.

scholarly journals EXPERIENCE OF TAXATION OF REAL ESTATE OF INDIVIDUALS IN FOREIGN COUNTRIES AND ITS APPLICATION IN RUSSIA

2019 ◽  
pp. 100-107
Author(s):  
M. Dement’eva ◽  
A. Zakharova ◽  
E. Kirova
Keyword(s):  
Real Estate ◽  
Developed Countries ◽  
Tax Rates ◽  
Real Property ◽  
Tax Base ◽  
Estate Taxation ◽  
Property Taxation ◽  
Foreign Countries ◽  
The World ◽  
Principle Of Justice

Approaches to the formation of the value of objects of taxation of real estate of individuals in foreign countries and the establishment of tax rates have been examined. An analysis of tax revenues on real estate of individuals in highly developed countries has been carried out. General trends in property taxation of individuals have been identified. Basic provisions, on which modern systems of real estate taxation of individuals are based, have been formulated. Problems of real property taxation in Russia have been identified. Ways of determining the tax base taking into account the world experience and Russian reality have been proposed. Proposals for the application of tax rates and the implementation of the principle of justice have been elaborated.

scholarly journals Lack of Uniformity in the Israeli Property Tax System 1997–2017

2020 ◽  
Vol 13 (12) ◽  
pp. 327
Author(s):  
Avi Perez
Keyword(s):  
Developing Countries ◽  
Real Estate ◽  
Central And Eastern Europe ◽  
Property Tax ◽  
Measurement Methods ◽  
Tax System ◽  
Tel Aviv ◽  
Unique Data ◽  
The World ◽  
Taxation System

There are two different forms of property tax systems: value-based tax, which is used in most countries of the world, and area-based tax, which is used mainly in Central and Eastern Europe and developing countries in Africa. Area-based property tax provides more stable and predictable budget revenues. It is simpler to administer and scores worse on equity grounds from the perspective of the ability-to-pay principle of taxation. Against this background, Israel’s property tax system, known as Arnona, is complex, spatially diversified, and causes a lack of uniformity that leads to tax distortion. This paper’s primary purpose is to identify the weaknesses of Israeli property tax from 1997 to 2017 and indicate how to improve the property tax system. This paper is based on case studies from four of the most important cities in Israel: Tel Aviv, Jerusalem, Haifa, and Beersheba, which have four different measurement methods for calculating property tax. Unique data were collected from the Israel Central Bureau of Statistics. According to this analysis, it was found that there are substantial differences in property tax between the four cities over the two decades analyzed. The main weakness is the lack of uniformity of the taxation system; the solution is to unify the measurement of real estate area for tax purposes using drone technology.

scholarly journals On the choice of priority approaches towards taxation of the population

2021 ◽  
pp. 19-35
Author(s):  
Anna Vital'evna Tikhonova
Keyword(s):  
Socioeconomic Development ◽  
Integrated Approach ◽  
Income Taxes ◽  
Tax Rates ◽  
Scientific Discussion ◽  
Advantages And Disadvantages ◽  
Correlation And Regression Analysis ◽  
Composition And Structure ◽  
Taxation System

The object of this research is the system of taxation of the population, while the subject is the composition and structure of taxes paid by private entities. The author analyzes the two priority approaches towards building the optimal and utmost fair system of taxation of private entities – through the object of “income” or “consumption”. Detailed analysis is conducted on the advanced Russian and foreign research on the topic. The author outlines the advantages and disadvantages of each approach from the perspective of horizontal and vertical justice, individual utility and its discounting. The scientific discussion on the absolute viability of taxation of income and consumption of the population is allocated into a separate chapter of the research. Based on the qualitative theoretical analysis, the author concludes on the rationality of choosing integrated approach towards creation of taxation system of the population. The cornerstone in this regard is the determination of the optimal ratio of consumption and income taxes. For this purpose, the author develops the original methodology based on the scattering matrix of 87 countries of the world, correlation and regression analysis of the indicators of their economic development and tax rates. The scientific novelty of consists in substantiation of the existence of substantial connection between the ratio of taxes on consumption and income of the population and the level of socioeconomic development of the country.

scholarly journals COMPARATIVE ANALYSIS OF FOREIGN SYSTEMS OF PROPERTY TAXATION

2020 ◽  
Vol 7 (2) ◽  
pp. 25-30
Author(s):  
Elena S. Stegnienko ◽  
Svetlana A. Frolova
Keyword(s):  
Comparative Analysis ◽  
Real Estate ◽  
Russian Federation ◽  
Property Tax ◽  
Tax Revenues ◽  
Single Tax ◽  
Property Taxation ◽  
The Russian Federation ◽  
Distribution Of Powers

The article discusses attempts to integrate land tax and property tax of individuals into a single tax on real estate in the Russian Federation. The analysis of foreign systems of property taxation on various grounds is given (level of distribution of powers, level of budget to which tax revenues, property, subject of tax are directed). The principles of the effectiveness of the system of taxation of real estate, developed by international practice, are identified.

scholarly journals LAND VALUE TAX IN THE CONTEXT OF SUSTAINABLE URBAN DEVELOPMENT AND ASSESSMENT. PART I - POLICY ANALYSIS AND CONCEPTUAL MODEL FOR THE TAXATION SYSTEM ON REAL PROPERTY

2010 ◽  
Vol 14 (1) ◽  
pp. 73-86 ◽  
Author(s):  
Saulius Raslanas ◽  
Edmundas Kazimieras Zavadskas ◽  
Artūras Kaklauskas
Keyword(s):  
Sustainable Development ◽  
Urban Development ◽  
Policy Analysis ◽  
Conceptual Model ◽  
Sustainable Urban Development ◽  
Property Taxes ◽  
Land Value ◽  
Real Property ◽  
Property Taxation ◽  
Taxation System

This article on issues related to real property taxes has two parts. Part One deliberates the concept of sustainable development as well as Lithuania’s real property taxation system and possible ways to improve it. Part Two analyses various methods of land assessment. The objectives of this paper are to analyze the importance of a tax on real property within the taxation system of Lithuania and to plan the implementation of such a reform in the future. A tax on land is presented as one alternative for a reform of the taxation system on real property in Lithuania.

scholarly journals Tax subsidies for entrepreneurs in case of property tax

2020 ◽  
Vol 19 (3) ◽  
pp. 161-171
Author(s):  
Edyta Jóźwiak
Keyword(s):  
Real Estate ◽  
Income Tax ◽  
Property Tax ◽  
Tax Law ◽  
Tax Rates ◽  
The European Union ◽  
Personal Income Tax ◽  
Free Competition ◽  
Tax Subsidies ◽  
Real Estate Tax

In Polish tax law, real estate is subject to taxation. Property tax rates depend not only on the type of property but also on the taxable person. Thus, as far as persons conducting business activity are concerned, real estate in their possession is taxed at a higher rate than that of natural persons. The amount of the tax payable annually may exceed the income of the trader concerned, since it does not depend on the taxable person's financial situation (as is the case with other taxes, e.g. personal income tax). Due to this fact, a catalog of tax reliefs and exemptions, i.e. the so-called tax subsidies, as well as the possibility of spreading the tax in instalments and deferring its payment date is an important role in real estate tax. The state, including municipalities, may create this form of aid, as long as it does not conflict with the provisions of the Act on State Aid and similar provisions in force in the European Union, which are designed to observe free competition in the market. The purpose of this Article is to indicate what are the current forms of assistance to entrepreneurs on the example of property tax.

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