Real Property Tax in Fiscal Decentralization Process in Ukraine: Current State and Prospects for Reforming
The article deals with the problems and transformation prospects for real property tax methodology and procedures in Ukraine based on the international experience in municipal taxation and needs of the national economy. Critical analysis of the government changes in real property tax collection and administration procedure in the process of budget decentralization in Ukraine has been performed. Special attention is paid to the analysis of the causes of low fiscal and regulatory efficiency of the above mentioned tax in Ukraine; as well as key areas of the process of real property tax reform to increase the local community fiscal capacity have been defined. The need for change of an area-based property tax to a property tax based on the assessed value has been justified; as well as differentiated real property tax depending on its market value, based on the relevant experience of the developed countries, has been proposed.