THE ANALYSIS OF THE ECONOMIC EFFICIENCY OF REGIONS ON THE LEVEL OF NUTS III AND ON THE PROPORTION OF MUNICIPIAL TAXATION - Polish Journal of Management Studies

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THE ANALYSIS OF THE ECONOMIC EFFICIENCY OF REGIONS ON THE LEVEL OF NUTS III AND ON THE PROPORTION OF MUNICIPIAL TAXATION

Abstracts > Vol 5


THE ANALYSIS OF THE ECONOMIC EFFICIENCY
OF REGIONS ON THE LEVEL OF NUTS III
AND ON THE PROPORTION OF MUNICIPIAL TAXATION


doc. Ing. Peter Adamišin, PhD., doc. Ing. Juraj Tej, PhD.

Abstract: Also the municipalities in the Prešov region were hit by the global economic and financial crisis. In this paper we analyze how the change of economic performance and subsequent revenue shortfall in the municipal influences the rates of individual components of real estate tax. The analysis was conducted in the region of Prešov in all district cities, using the average monthly wage of population, unemployment rate as indicators of economic performance and the changes of selected real estate tax rates.

Keywords:
crisis, local taxes, price, changes in tax rates, standard of living, real estate tax.
JEL Codes: H20,H60, H87

Introduction

European Charter of Local Self-government expressed in the European context, that own revenue base of municipalities is the basis of its economic integrity, while creating an economic sovereignty of the municipality's ability to pay their own expenses to meet local needs arising from the original functions of the village. States, that local authorities are entitled to their own financial resources with which they may dispose freely within their powers [15].
The financial and economic crisis has its direct impact on the state and the municipalities [11]. These are the effect on individual performance by the local authorities, particularly in terms of their financing and the subsequent economic stability. The crisis also limits the needs of residents in the area of public goods [2]. Most frequently presented problem is the instability and loss of tax revenue from personal income as a result of central tax, which equate to the municipality as a result of standardized redistribution processes. The crucial parts of municipality
s revenue are government transfers and shared taxes, which criteria for the selection are made by the central government.
Municipalities are trying to respond to this situation, solving its own revenue base, by measures to help them increase revenue for the performance of original powers. These are local taxes and fees [18]. Increasing rates of local taxes is for municipalities one (and often only one) way for government how to solve the problem. Of course with all the consequences of a possible decline in profitability in the growing rates and taking into account the average standard of living in the municipality as a pro-social approach of the municipal government.


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Conclusion


Based on those conclusions, we can conclude that the NUTS III do not adjust tax policy to their own economic situation. Economic performance or inefficiencies of regions is not the factor that determined municipal tax policy. We cannot evaluate this fact positively because:
– regions (NUTS III) are not sufficiently using one of the autonomous instruments for influencing regional development;
– representatives of cities as well does not prefer replenishment of income budgets loss, reducing the tax burden of citizens and businesses by real estate taxes.
Nevertheless, based on the analysis it can be argued that the district towns in 2010, responded only very weakly to the economic and financial crisis in relation to real estate tax. Local politics dealt more with the issue of following electoral year than the question of increasing revenue of the general budget, or pro-social empathy. Applied tax policy is determined by other, probably hardly identifiable and quantifiable factors (e.g. political interests, lobbying ...) and in this case it is not used to stimulate regional economic growth.

ANALIZA EFEKTYWNOŚCI EKONOMICZNEJ REGIONÓW POZIOMU NUTS III W PROPORCJI DO OPODATKOWANIA MIEJSKIEGO

Abstrakt: Także w Presovie, gminy zostały dotknięte przez globalny kryzys gospodarczy i finansowy. W niniejszym artykule przeprowadzona została analiza jak zmiana wydajności gospodarczej, a następnie niedobór dochodów w kasie miejskiej wpływa na ceny poszczególnych elementów podatku od nieruchomości. Analizę przeprowadzono w regionie Presov, we wszystkich miastach powiatowych, przy użyciu przeciętnego, miesięcznego wynagrodzenia ludności i stopy bezrobocia jako wskaźników gospodarczych oraz zmian wybranych stawek podatkowych od nieruchomości.


 
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