Shares in income taxes as a budget revenues of urban-rural municipalities

Abstract

The presented article is designated to analyse the meaning of shares in PIT and CIT taxes constituting budget revenues of municipalities (NUTS 5 level). The research covered budgets of all urban-rural municipalities of Lower Silesian Voivodeship in the years 1996-2014. The source of data on the revenues of municipalities were databases of the Central Statistical Office. The structure of municipalities revenues was analysed, considering among others the distribution of share in own revenues in total revenues, revenues from shares in PIT and CIT in total revenues and the dynamics of revenues. For the researched municipalities the shares in PIT ensure on average from 10% to 15% of revenues in general, constituting a significant addition to taxes and local fees. For the majority of municipalities shares in CIT constitute a marginal source of revenues which is caused by the functioning of a relatively small number of economic entities within their territory, which are covered by this tax. The key problem associated with gathering of these revenues is their instability stemming, above all, from business fluctuations impacting the tax base, secondly-stemming from changes in the structure of taxes themselves not compensated entirely by increasing additional financial resources.