Kommunale Umsatzsteuerbeteiligung: Quantitative Umverteilungen durch den neuen fortschreibungsfähigen Verteilungsschlüssel

Tony Mudrack ()

Review of Regional Research: Jahrbuch für Regionalwissenschaft, 2012, vol. 32, issue 1, 85-111

Abstract: The allocation of the municipal share of the German value-added tax is a unique construct with different economy-based components. These components are merged in a single distribution key for each municipality. After more than a decade of unmodified application, the distribution system was fundamentally reformed, ensuring a triennial update of all newly implemented components. However, the reform has high quantitative effects on revenues of the German value-added tax, particularly in the East German municipalities. Due to the lack of public analyses about these quantitative effects, this paper identifies the enhanced and reduced revenues for different municipality categories and discusses the reasons for the reallocation. Up to now, the distinct German fiscal equalization schemes are not capable of closing the revenue gap between the relevant municipalities. Furthermore, in East Germany it is not possible to observe any economical above-average improvements to reach the level of the previous distribution keys. To minimize these quantitative effects an implementation of adjustments is necessary. Hence, a complete integration of the municipal tax revenues in the German financial equalization system is one possibility for an almost entire compensation. An alternative adjustment option is the maintenance of the preliminary allocation of 15 percent for East Germany. Any other preliminary allocation leads to significant redistribution effects between all German municipalities. Copyright Springer-Verlag 2012

Keywords: Öffentliche Finanzen; Kommunale Steuereinnahmen; Kommunale Umsatzsteuerbeteiligung; Interregionale Unterschiede; Länderfinanzausgleich; H71; H73; H77; Public finances; Municipal tax revenues; Municipal share of German value-added tax; Interjurisdictional differentials; German Länder fiscal equalization scheme (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s10037-011-0060-z

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