PROPERTY TAX IN THE REGIONS OF THE CZECH REPUBLIC

Fiscal decentralization in the context of the reallocation of public resources is a complex and multifaceted process, which fosters social priorities and strategies. The main objective is to increase the self-reliance and self-sufficiency of municipalities related to allocation efficiency and possible adjustment to the local conditions. The municipalities in the Czech Republic have the possibility to affect the tax revenue on immovable property by means of the coefficients being thus the only assigned tax. The aim of the paper is to determine the use of legislative tools to increase the tax revenue on immovable property in the regions of the Czech Republic. Access of municipalities to the increase in the tax revenues on immovable property is then studied through three coefficients within the Moravian-Silesian Region. Examples of good practice in motivating municipalities to implement or modify selected coefficients leading to an increase in municipal budgets are examined. The article also performs a description of the development of the tax on immovable property in the Czech Republic, on the basis of the time series of tax imposed as a follow-up to the legislative changes. Methodically the research relies on the evaluation of secondary statistical data of the Czech Statistical Office and Financial Administration of the Czech Republic, and the primary research that was implemented in 2016 focuses on the application of the coefficients by municipalities of the Moravian-Silesian Region. This research closely follows up on the research of the use of local coefficients, which was carried out in 2014 and 2015.