Resource information
The research aim is to assess taxes transferred to the budgets of local governments and to discuss possibilities for the expansion of tax revenues to be transferred to local government budgets. The research leads to the conclusion that the part of personal income tax deductions in local government budgets should be gradually increased up to 100% determining the personal income tax as local government tax thereafter. This could enhance the possibility to increase the financial independency and to strengthen the income base of local governments. The issue on the distribution of personal income tax by a place of work and not by a place of residence shall be solved in the future, thus, prescribing that the personal income tax is transferred to the budget of that local government in which territory the workplace is located. The immovable property tax should be determined as local government tax and the tax autonomy of local governments should be expanded through the possibilities to define taxable items and rates, and to plan the immovable property tax revenues. Since the promotion of economic performance in its administrative territory is one of the autonomous functions of local governments, it could be reasonable to link the local government budget with some of taxes (for example, corporate income tax), which are closely related with the economic performance. The expansion and diversification of taxes transferable to local government budgets would increase the level of financial autonomy, stability, and legal capacity of every local government.
