Administrative Factors as Potential of Growth of Individuals Property Tax Collection

Abstract

The article assesses possible ways of finding means of increasing individuals property tax collection. It is pointed out that potential growth depends on many factors that world theory and practice have classified depending on the level of income of the population, the stage of ongoing reforms and a combination of different variables, including political, legal, operational, institutional and financial ones. The effectiveness of property taxation in a particular country depends on legislation which determines the tax base and tax rates, as well as four administrative factors influencing tax coverage, assessment, assessment of tax liabilities and collection, which ultimately ensure growth of property tax collection by municipal bodies. This is of practical importance, since it allows evaluating the current property tax system in order to find ways of revenue growth and identify “bottlenecks” in the tax inflow. This evaluation technique should be a tool for conducting tax policy at the municipal level.