Improvement of Local Property Tax Administration in South East Europe
This publication contains guidance on the most critical tasks needed to improve local tax administration with a comparative analysis of the situation in SEE. It provides practical advice by specifying methods used for property identification, assessment of property and techniques of local property tax collection and enforcement. It presents good practices on property administration within the countries of South East Europe. Recent successful international programs in some SEE countries are also described.
Local governments’ fiscal autonomy is very much defined by the scope of our own source revenues. Our own revenues limit the dependence of municipalities on the intergovernmental transfers and shared revenues received from the national budget. Local taxes, user charges and fees empower municipalities to develop their own policies by tapping these potential revenue sources: local tax autonomy makes the collection more effective and authorizes municipalities to introduce their own social policy measures. These sources of revenue also increase the local governments’ accountability: taxpayers usually control municipal spending decisions more carefully when expenditures are financed through local taxes.