DIVERSIFICATION OF FISCAL AND ECONOMIC CONSEQUENCES OF MUNICIPAL TAX POLICY ON THE EXAMPLE OF REAL ESTATE TAX

Anna Wichowska () and Anita Wadecka
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Anna Wichowska: Faculty of Economic Sciences, University of Warmia and Mazury in Olsztyn
Anita Wadecka: Student of the Faculty of Economic Sciences, University of Warmia and Mazury in Olsztyn

OLSZTYN ECONOMIC JOURNAL, 2021, vol. 16, issue 2, 219-235

Abstract: The aim of the article was to assess the fiscal and economic differentiation of the municipal tax policy on the example of real estate tax in Polish cities with poviat status. This is an important theoretical and practical issue. On the one hand, the application of high tax rates may contribute to an increase in the budgetary revenues of cities, and on the other hand, may discourage potential investors from operating in the city and deteriorate its economic and social condition. The research allowed to state that the use of municipal tax policy is an instrument that strongly regulates fiscal and economic processes taking place in local government. It was found that the largest real estate tax revenues were in cities with a fiscal tax policy (where the highest tax rates were applied), while cities with relatively low real estate tax rates achieved in 2018-2020 an average revenue three times lower than cities applying fiscal tax policy. Moreover, the research proved that the most developed local governments in terms of socio-economic use applied fiscal tax policy. The least developed socially and economically was the group of cities with a liberal tax policy, and therefore applying relatively low tax rates.

Keywords: real estate tax; fiscal policy; municipal budget; own revenue; social and economic development (search for similar items in EconPapers)
JEL-codes: H71 R51 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ole:journl:v:16:y:2021:i:2:p:219-235

DOI: 10.31648/oej.8044

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