Sensitivity of Polish System of Municipal Revenue from Real Estate Market to Changes in Economic Situation

Abstract

The paper discusses the local government revenue from the real estate market, focusing mainly on assessing the sensitivity of the income of municipalities from the real estate market to changes in an economic situation. The study covered all communes (gminas) in Poland, excluding voivodeship capitals: municipalities, urban-rural communities, rural communities. The temporal scope of the analysis was a decade between 2005 and 2015. The analyses focused on the following three groups of revenue from a real estate market: recurrent property taxes, revenue from municipal assets and taxes in respect of ownership right transfer. The main research hypothesis was made that the system of revenue from the real estate market in urban communities was more sensitive to changes in an economic situation than in urban-rural and rural communities. The analyses were conducted for the country in general and in regional sections. The data came from the Local Data Bank of the Polish Central Statistical Office. The data analysis was conducted by means of statistical and econometric methods.