Land Tax As a Source of Local Budget Revenues

Abstract

The land tax is a kind of the payments, which was paid to fill the treasury since very long ago. That long there has been a problem of identification of a fair and comparable tax burden and to motivate payers to pay it properly. According to the author, such motivational stimulus may be awareness and perception that the money that is paid will return in another good. It will be spent on satisfaction of the general public interest, part of which is the individual interest of the given payer. For example, building a road or repairing a hospital, or restoring contaminated lands, or carrying out their reclamation. Since the land tax, according to Ukrainian legislation, is local, all funds come to the local budget. Therefore, the territorial community itself must be interested in its effective administration and timely payment. One of the problems encountered in tax administration is the poorly formed tax base. The object of taxation, according to the Tax Code of Ukraine, is the formed land plot. Which means that it has been assigned a cadastral number and information about its owner or user entered in the register of real rights to real estate and their encumbrances. Unfortunately, many potential land tax payers do not properly process their property. Because of this, the budget of the local community and the payers themselves lose. Since their property rights are not properly protected. The registry data is predominantly legally valid in comparison to previously issued land tenure documents. In addition, if the information about the land plot is not included in the relevant register, the person can not take any legal action regarding it. Thus, changing the views of the inhabitants on land tax as a benefit, but not evil - will promote the development of territorial communities and protect their own interests.