The paper analyses the impact of local taxes and fees on the financial sustainability of territorial communities. The concept of financial sustainability is considered in relation to financial management, investment planning and debt control. It is noted that in the context of finance, the concept of ‘financial sustainability’ is identified with stability, security and flexibility. The author also analyses the share of local taxes and fees in the tax and total revenues of local budgets of Ukraine for the period 2021-2023. In turn, this allowed us to highlight changes in the structure of local budget revenues, in particular, changes in tax revenues and their relative contribution to total revenues. The calculated coefficients were used to highlight the role of local taxes and fees in ensuring financial sustainability on the example of the budget of the Lviv territorial community. The values of key financial indicators that characterise the level of financial sustainability of the budget of the Lviv city territorial community for the period 2021-2023 are also investigated. Using tables, the author analysed the coefficients such as the coefficient of independence, budget coverage, tax independence, budget security, subsidy and withdrawal of funds to the state budget. Fluctuations in these indicators over three years and their impact on the financial sustainability of local budgets in times of war were studied, i.e., the current state of the system of local taxes and fees was demonstrated. An important aspect of the study was the impact of the military conflict on the local taxation system in Ukraine, as in the context of the war in the country, it was necessary to consider not only the threat to security and stability, but also the economic consequences that significantly affect the financial support of local communities. Particular attention was paid to the efficient allocation of financial resources and the creation of reserve funds to ensure financial stability in unforeseen circumstances. The importance of local taxes as a key mechanism for strengthening the financial base and stability of territorial communities is highlighted, as this aspect contributes to their development and improves the quality of life of residents.
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