Urbanization and Local Taxes – The Case of the Czech Republic Focused on the Infrastructure Charge

RADVAN, Michal. Urbanization and Local Taxes – the Case of the Czech Republic Focused on the Infrastructure Charge. In Hoffman, I., Rozsnyai, K. F., Nagy, M. Urbanisation and Local Government(s). 1st ed. Maribor: Lex Localis - Institute for Local Self-Government Maribor, 2021. p. 123-137. ISBN 978-9

15 Pages Posted: 15 Oct 2021

See all articles by Michal Radvan

Michal Radvan

Masaryk University, Faculty of Law

Date Written: September 7, 2021

Abstract

The urbanisation is connected with the higher costs of cities for the management, because they are responsible for local infrastructure and services. The legal regulation of local taxes and especially the infrastructure charge in the Czech Republic is not sufficient. The sources for local budgets might be found in the recurrent property tax. There are already instruments connected with the urbanisation. The location rent reflects the fact that the more inhabitants are living in the municipality, the higher are the costs for local transportation systems, education, communal services incl. the infrastructure, public security, healthcare, culture, etc. The local coefficient can be applied for all types of immovable property in the municipality's territory, except for agricultural land, and it might multiply the final immovable property tax by 2, 3, 4, or 5. With regard to the urbanisation and related infrastructure investments, it would be useful if municipalities get the right to apply the local coefficient only at specific parts of the municipality or for specific types of property. Such a recurrent property tax regulation connected with the planning contracts between municipalities and private developers might be an ideal approach in the area of local taxes, infrastructure financing, and urbanisation.

Keywords: urbanisation; infrastructure charge; property tax; local tax; planning contract

JEL Classification: K34

Suggested Citation

Radvan, Michal, Urbanization and Local Taxes – The Case of the Czech Republic Focused on the Infrastructure Charge (September 7, 2021). RADVAN, Michal. Urbanization and Local Taxes – the Case of the Czech Republic Focused on the Infrastructure Charge. In Hoffman, I., Rozsnyai, K. F., Nagy, M. Urbanisation and Local Government(s). 1st ed. Maribor: Lex Localis - Institute for Local Self-Government Maribor, 2021. p. 123-137. ISBN 978-9, Available at SSRN: https://ssrn.com/abstract=3918788

Michal Radvan (Contact Author)

Masaryk University, Faculty of Law ( email )

Veveri 70
Brno, 61180
Czech Republic

HOME PAGE: http://www.law.muni.cz

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