Moral Hazard in Property Tax Administration: A Comparative Analysis of the Czech and Slovak Republics

Abstract

A federalist country adopting a tax must decide which level of government will design tax policy, which will administer the tax, and which will collect the revenues. Often, the same level of government performs all three functions, just as the federal income tax is handled in the United States. Of course it need not happen this way. In Taiwan, the value-added tax is largely administered at the provincial level, policies governing its use are set by the national government, and the revenue is split between the two government levels. In the United States, state governments establish property tax policy and local governments administer the property tax, but the majority of the revenue goes to school districts, which have no policy or administrative role in the process.KeywordsLocal GovernmentCentral GovernmentSlovak RepublicFiscal DecentralizationMoral Hazard ProblemThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.